Oil Isn't Cheap Anymore

At last, high prices have convinced people to drive less.

Kevin Bullis 07/10/2008

9 Comments

As gas prices rose over the past couple of years, many experts pointed out that, when adjusted for inflation or seen as a percent of average incomes, gas was still less expensive than historical records. Their views seemed to be backed up by the fact that gas consumption continued to rise. Some experts said that oil would have to reach the unthinkably high price of $134 a barrel before it had the same impact as oil prices in the early 1980s.

Now, with oil prices having crossed the $140-per-barrel mark and gas prices costing more than $4 a gallon, the Wall Street Journal is reporting that people have seriously cut back their gas consumption: they're currently at levels last seen five years ago. Now even the economists can agree that oil isn't cheap anymore.

The high prices are also changing priorities at the major automakers. Today, Toyota announced that it will start to produce its Prius hybrid in the United States to help meet demand for the fuel-efficient vehicle.

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mulp

5 Comments

1312 Days Ago
07/11/2008

Bush, the global warming president

Just think how Al Gore's call for a 50 cent carbon tax was universally denounced and rejected. Bush has given us at least a $2.50 a gallon carbon tax, and did so with very strong conservative support, and conservatives are supporting Bush's efforts to raise the carbon tax to $3, $4, maybe $7 a gallon, with ratcheting up of threats of war with Iran.

And war with Iran might increase the Bush carbon tax to $10 to $20 a gallon! The action to address global warming would be dramatic.

tomaq

2 Comments

1312 Days Ago
07/11/2008

"At last, high prices have convinced people to drive less."

Some people are driving less but for many, old habits die hard. Maybe when drivers stop leaving the engine running while they run into dunkin donuts we'll have reached a tipping point...

Infogleaner

2 Comments

1312 Days Ago
07/11/2008

Bush the conservation president

Interesting that Bush will go down in history for doing more to eliminate the internal combustion engine than (the real president) Gore ever did.

It is further interesting that market forces are driving the change faster than laws being made to do the same thing.

omegaman66

1 Comment

1312 Days Ago
07/11/2008

Re: Bush the conservation president

Wow I knew the President had a lot of power but I didn't realize that Bush had the ability to increase demand for Oil in India and China.

Bush couldn't even get closed areas in the USA open to drilling thanks to the Democrats yet he is getting the blame for world wide supply exceeding demand.

mkogrady

423 Comments

1309 Days Ago
07/14/2008

Presidential Lightning Rod

Bush, Clinton, Reagan, Carter - NONE OF THESE GUYS ARE AT FAULT.

We are! To make matters worse, we voted them in too and never willingly wanted them to change anything on our behalf!

These presidents allowed us to spend freely and never developed any real conservation laws to protect us and future genrations.

Maybe this time we'll see real policy changes.

BTW - most of us posting here have Internet Access - JUST TELECOMMUTE MORE, and tell your buddies and kids to do the same!

powdermilk

2 Comments

1309 Days Ago
07/14/2008

Spend less on gas just by changing your habits.

First, don't buy a new car just for the better gas mileage.   I've done a calculation to figure out how many miles I would have to drive at current gas prices before I saw a cost savings.   If I were to trade in my Volvo (20 mpg) and buy a Prius (50 mpg), assuming a total outlay of $24,000, with gas prices locally at about $4.70 a gallon, I'd have to drive about 166,000 miles before this would save money. This doesn't even take into account the fuel and carbon cost to produce a new car. Even if gas prices were to double in the next year, I'd still have to drive about 55,000 miles before seeing any savings.

You could nearly halve your fuel costs by carpooling with only one person. This all but wipes out the year's gains in fuel costs.   I know, a lot of people don't have that option, but I bet most do.

You could get 10-20% better gas efficiency by accelerating and driving more slowly.   I was getting less than 19 mpg and now I'm getting nearly 21. For all but long road trips, speeding isn't going to save you more than a few minutes, if that.   Other drivers may be annoyed at me for doing 55-60 in a 65 zone, but my fuel cost equivalent is 40 cents a gallon less. This is something everyone can do, even those who have to drive alone.

mkogrady

423 Comments

1308 Days Ago
07/15/2008

Re: Spend less on gas just by changing your habits.

Rather than buying new, just convert that Volvo to a Flex fuel vehicle for about $700(convert2E85.com) and then use subsidized ethanol to reduce your driving costs a bit. The other $23300 you save over the Prius - use some to buy an E-bike or something for those short trips around the neighborhood.

Remember, all the US has to be able to do is ride out the next few years till mass produced cheap cellulosic ethanol is available. Your Volvo will be ready to roll and you can reinvest those Prius dollars into some Ethanol stock and make a bundle!

2 Comments

1308 Days Ago
07/15/2008

Re: Spend less on gas just by changing your habits.

I don't believe there is ever going to be any cheap non-subsidized mass produced cellulose ethanol. Did you ever try burning a bale of straw? There is limited amount of energy in the bale and the reality is that no more energy can be extracted than is contained within. The high volume low energy of cellulose will limit the economic ability to transport it to concentrating locations and thus force a number of smaller plants that will never achieve the dream of cheap energy.

Jerry Gwynne

1 Comment

1299 Days Ago
07/24/2008

Re: Spend less on gas just by changing your habits.

True, and why can't we have less powerfull vehicles for less money, none offered/ GM wants us too buy a Corvette that will do 200 mph for 300,000 $.
They also try to kill any idea that will cut into their profits, with a take it or leave it attitude.