What we are going to look at is ways of improving efficiency around the home. We will also take a look at alternative energy sources. Such as solar, and wind energy.

Gas, oil, and electric prices continue to go up every year. It's becoming ever more apparent that we need to reduce our energy needs. There are two ways of going about doing this. One is conservation. Turning down the thermostat even more, and use a sweater just to stay warm. Turning off more lights, and sitting in the dark. This does not sound like any fun at all. The other way is higher efficiency. Another words doing the same task, but using less energy. We all get those monthly reminders in the mail of the increasing cost of energy.

Because of increasing demand for oil, has resulted spot shortages. The conditions that exist right now is that world oil production can just meeting current demand. If for some reason world oil production falls short due to a workers strike, or natural disaster will result in higher prices. Under these conditions there is no reserve capacity to make up for any shortages. Prices can climb rapidly, because of tight supply. The other scary fact is that world demand keeps on increasing at a faster rate than production can increase. Experts are estimating that in 2014 that world oil production will peak. After 2014 oil production will begin to decrease even though world demand is still increasing. By becoming more energy efficient you will lessen your dependence on energy suppliers.

We all face choices in life. Some of these choices like the type of home you live in, and the car you drive. Will affect the amount of energy you use. For instance; if you have a well insulated home, with a high efficiency furnace. Your utility bills will be less. Some one driving a large SUV (10- 15 mpg) will pay more in fuel cost than some one with a compact car (30-70 mpg). Sitting behind the wheel of a nice new SUV is a nice feeling. Unfortunately this feeling goes a way, when you pull up to the gas pump. Gas mileage should be a significant consideration when choosing a vehicle. Unfortunately most people do not think of this until after the purchase. See the example below.

In the example here, we are comparing three vehicle fuel operating cost over a year. Most people drive about 15,000 miles a year. And with price of gas at $3.00 a gallon.

Example one: GMC Yukon XL 4WD.
Rated at 12 mpg city, 17 mpg highway
At say 14 mpg this vehicle will use 1071 gallons of gas in a year.
And at $3.00 a gallon for gas will cost the owner $3213.00 every year.

Example two: Toyota Corolla automatic transmission
Rated at 27 mpg city, 35 mpg highway
At say 31 mpg this vehicle will use 483 gallons of gas in a year.
And at $3.00 a gallon for gas will cost the owner $1449.00 every year.

Example three: Toyota Prius.
Rated at 48 mpg city, 45 mpg highway
At say 47 mpg this vehicle will use 319 gallons of gas in a year.
And at $3.00 a gallon for gas will cost the owner $957.00 every year.

We can see the saving by comparing the Yukon to the Corolla. The Corolla owner will save $1807.00 every year for its owner, and for the life of the vehicle a savings of $11,751 in fuel (100,000 miles). The actual savings would be more, because of increasing gas prices.

Energy costs have been going up an average of about 20% per year over the last 3 years. If this holds true for the next ten years gas will be very pricey.

Gas price prediction
In 2006 gas cost $2.30 per gallon. Yukon fuel cost per year $1725.
In 2007 gas cost $2.76 per gallon. Yukon fuel cost per year $2070.
In 2008 gas cost $3.21 per gallon. Yukon fuel cost per year $2407.
In 2009 gas cost $3.85 per gallon. Yukon fuel cost per year $2887.
In 2010 gas cost $4.62 per gallon. Yukon fuel cost per year $3465.
In 2011 gas cost $5.55 per gallon. Yukon fuel cost per year $4162.
In 2012 gas cost $6.66 per gallon. Yukon fuel cost per year $4995.
In 2013 gas cost $7.98 per gallon. Yukon fuel cost per year $5985.
In 2014 gas cost $9.58 per gallon. Yukon fuel cost per year $5985.
In 2015 gas cost $11.50 per gallon. Yukon fuel cost per year $8625.
In 2015 gas cost $13.44 per gallon. Yukon fuel cost per year $10080.

Now it's impossible to exactly predict gas cost so far in the future. But there is one certainty that history has shown us, is that prices will go up. Fuel prices due to tight supple have become very unstable. It some one sneezes in the Middle East the price of oil goes up.
It makes more sense to buy a vehicle that will meet your needs 99% of the time. And then borrow, or rent a vehicle for the couple times a year when a different one is actually needed.