Gas Usage Down

[Mr. Laz]

Posted on Mon, Apr. 21, 2008 10:15 PM

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Gasoline usage heads down

By STEVE EVERLY

The Kansas City Star

• Chris Lester: We haven’t seen the peak of gasoline prices
• KCGasPrices.com

If you decide to make changes based on the high cost of gasoline, which of the following would you consider?

U.S. drivers are doing something they haven’t done for nearly two decades — consume less gasoline.Gas consumption so far this year is down about 0.2 percent compared to last year, according to the Energy Information Administration. The federal agency is predicting that gasoline demand will be down 0.4 percent this summer and 0.3 percent for the year.
That may not sound like much, but it would be the first time since 1991 that there’s been a decline in annual gas consumption. And it would be only the eighth year since 1951 in which demand for gasoline has declined.
The federal agency noted that the decline was occurring in part because of a slowing economy. But it also said that higher gas prices were having an effect on demand.
“Sustained higher gasoline prices are beginning to show up in lower gasoline consumption,” said Tancred Lidderdale, an analyst for the Energy Information Administration.
Both gasoline and diesel prices are now at record levels.
According to AAA, the national average on Monday for a gallon of gasoline was $3.50 a gallon, or 64 cents higher than a year ago. Diesel was $4.20 per gallon, or $1.27 higher than a year ago.
A gallon of E-85, a blend that contains 85 percent ethanol, was $2.89 a gallon. AAA also gives an adjusted price reflecting the fact that ethanol has less energy than conventional gasoline. By that measure, a price-adjusted gallon of E-85 was $3.81.
Crude oil prices were up on Monday for the sixth straight day. Light, sweet crude for May delivery rose to a record $117.76 a barrel on the New York Mercantile Exchange before settling at $117.48, up 79 cents from Friday’s close.
Figures that track gas consumption can be volatile from week to week. But the idea that demand for the year will be down is gaining support.
Lehi German, publisher of Fundamental Petroleum Trends, said the federal agency’s prediction of a downturn was “in the ballpark.” In addition, diesel demand has shown signs of softening as well.
Although higher fuel prices were expected to have an effect on demand, it wasn’t clear just how high they would have to go to do so. Many market watchers believed prices would have to stay above $3 per gallon for several months or even a year.
That tipping point for gasoline demand may have arrived.
Mike Right, a spokesman for AAA Club of Missouri, said that a decline in gasoline usage shouldn’t come as much of a surprise. A survey conducted in January by AAA found that many motorists were already deciding to change vacation plans for this summer by planning for shorter trips.
“We are starting to see some signs of that,” he said.
Verne Covell of Smithville counts himself as one who’s had enough.
Now retired, Covell bought a pickup and travel trailer when he retired in 2000. Long trips with his wife to places like Canada were common.
This year, however, there will be at most a trip to south Missouri. The trailer may even stay in storage for the entire year because of fuel prices.
“We’re getting on and you don’t know how long you have,” he said. “But this year we decided it just got too expensive.”
There are indications that a fundamental shift in consumer driving habits may have started in December, when total miles traveled in the U.S. dropped 3.9 percent compared with the same month a year earlier. Miles traveled in the Midwest were down 5.8 percent.
Mainly because of the December drop, the Federal Highway Administration said it was estimating that miles traveled for all of 2007 were down 0.4 percent.

A question now is whether the curtailing of gas consumption could gain momentum, especially if prices climb further.
Steve Mosby is vice president of Admo Energy, an area company that helps other companies, including gas stations, control the cost they pay for fuel. He said his company had been getting recent reports from customers of substantial reductions in the number of gallons being pumped.
And those changes may show up in daily commuting habits in addition to plans for longer trips.
Demand already is increasing for automobiles offering higher gas mileage.
The Kansas City Area Transportation Authority also reports that bus ridership has been growing as gas prices have increased. Last year ridership was up 4.1 percent. For the first two months of this year, compared to the same period last year, the number of riders was up 9 percent.
“I certainly think gas prices are having an impact on our ridership,” said Dick Jarrold, a senior director at ATA.
A decline in gasoline demand could help give some relief from high prices. Although prices are surging as the traditional summer driving season approaches, some market followers expect prices to ease back later this summer.
One ongoing concern is that even though Americans may be cutting back on gas consumption, emerging middle classes in faster-growing countries such as China and India are quickly embracing the driving habit and pushing global demand for fuel higher.
“That’s the billion-dollar question,” Mosby said.

---

Higher standards sought

WASHINGTON | The government today plans to release a proposal to raise fuel efficiency standards for new cars and trucks, putting the nation’s fleet on track to reach 35 miles per gallon by 2020.

Last year, Congress sought a 40 percent increase in mileage standards.


Today’s proposal will set fuel economy standards from 2011 to 2015.


The nation’s fleet of new passenger cars is currently required to meet a 27.5 mpg average, while sport utility vehicles, pickup trucks and vans have a target of 22.5 mpg.


Democrats have said the new fuel economy requirements will save motorists $700 to $1,000 a year in fuel costs.

The Associated Press contributed to this report. To reach Steve Everly, call 816-234-4455 or send e-mail to severly@kcstar.com. | The Associated Press

[Old Dog]

Originally Posted by Radar Chief

Get a motorcycle. Seriously, even my “warmed over” ’95 Kawasaki ZX-9 gets over 40 MPG highway.
Get something a bit more pedestrian and the mileage goes up to +50 MPG pretty easily.

I ride the bike any day it isn't forecast to rain. 20 miles one way to work and 40 mpg on the bike as opposed to 18 in my truck.

[Deberg_1990]

Originally Posted by frazod

Before I went into mid-life crisis mode and bought my '05 Mustang, I had an 03' Pontiac Vibe that I really liked. A Vibe is basically a tall Toyota Corolla stationwagon with a Pontiac grille. Got great mileage, was extremely useful, and I was a FOOL to ever get rid of it. Wish I still had the goddamn thing - it would be paid off now, too.

Your post brings up an interesting point about Americans in general.

Americans are all about "style points" and looking good at the expense of saving $$$ on fuel.

We love our muscle cars and SUV's, we love to go fast, and we love to look good while doing it.

Its a huge shot to our ego's to drive small economical cars.

[Frazod]

Originally Posted by Brock

Yeah, I wondered why you did that.

Gas wasn't threatening to top $100 a fucking gallon in March of 2005.

Hell, if I'd waited one more month to get rid of the Mustang, I'd probably be driving a Civic now. I traded the Mustang for my Impala last March; gas started going through the roof a month later.

[Frazod]

Originally Posted by Deberg_1990

Your post brings up an interesting point about Americans in general.

Americans are all about "style points" and looking good at the expense of saving $$$ on fuel.

We love our muscle cars and SUV's, we love to go fast, and we love to look good while doing it.

Its a huge shot to our ego's to drive small economical cars.

Agreed. I hate little cars, even if they're fast. You can get a Subara WRX that will blow damn near anything off the road, but at the end of the day, it's a vile little shitbox. But there's little point in having a big car you can barely afford to drive. I hate to think how fucked we'll be a couple of years from now unless something drastically changes.

[Radar Chief]

Originally Posted by Donger

If I pull really hard on the steering wheel, yes, a little one.

Sure.

[Spott]

Originally Posted by Donger

Congress could lower the price of gasoline by $.184 right now, if they were so inclined. Other than that...

Even if they cut that tax, the oil companies wouldn't even drop half of that and would keep the rest of it as profit.

[Radar Chief]

Originally Posted by truebigdog

I ride the bike any day it isn't forecast to rain. 20 miles one way to work and 40 mpg on the bike as opposed to 18 in my truck.

If I didn’t have to pick my son up after work I’d be riding mine every day weather allowed.

[jidar]

Originally Posted by frazod

But there's little point in having a big car you can barely afford to drive. I hate to think how fucked we'll be a couple of years from now unless something drastically changes.

If nothing changes?
Ok it's about time people woke the **** up. Nothing is going to change.
Maybe it will dip down to $3/gal again briefly if the global economy REALLY goes in the tank but even then it wont stay there long. So allow me to be as clear as possible:

The prices aren't coming back down again. Ever.

People will have to change their habits and start driving small cars, motorcycles hell scooters. There is no real reason I have to drive a 4x4 that gets 15mpg to work every day and weighs 2 tons, that fact is it's always been ridiculous and extravagant and we're just going to have to come to terms with that accept it. The days of soccer moms going to the corner in a ****ing tank are coming to an end. Live with it.

[Deberg_1990]

Originally Posted by jidar

If nothing changes?
Ok it's about time people woke the **** up. Nothing is going to change.
Maybe it will dip down to $3/gal again briefly if the global economy REALLY goes in the tank but even then it wont stay there long. So allow me to be as clear as possible:

The prices aren't coming back down again. Ever.

People will have to change their habits and start driving small cars, motorcycles hell scooters. There is no real reason I have to drive a 4x4 that gets 15mpg to work every day and weighs 2 tons, that fact is it's always been ridiculous and extravagant and we're just going to have to come to terms with that accept it. The days of soccer moms going to the corner in a ****ing tank are coming to an end. Live with it.

I actually agree with you here. People should be willing to change their habits or quit complaining so much and live with it.

[Donger]

Originally Posted by jidar

If nothing changes?
Ok it's about time people woke the **** up. Nothing is going to change.
Maybe it will dip down to $3/gal again briefly if the global economy REALLY goes in the tank but even then it wont stay there long. So allow me to be as clear as possible:

The prices aren't coming back down again. Ever.

People will have to change their habits and start driving small cars, motorcycles hell scooters. There is no real reason I have to drive a 4x4 that gets 15mpg to work every day and weighs 2 tons, that fact is it's always been ridiculous and extravagant and we're just going to have to come to terms with that accept it. The days of soccer moms going to the corner in a ****ing tank are coming to an end. Live with it.

I thin that there's a good chance that oil will fall, as I don't believe that the present price is justified. But, pretty much the only way for us to influence the price is by cutting our demand.

[007]

Originally Posted by Radar Chief

Wonder how much the increased cost of more efficient vehicles will offset that savings.

BINGO.

And don't forget the tax the democrats will impose on everyone for using more efficient vehicles and gas.

[007]

Originally Posted by Spott

Even if they cut that tax, the oil companies wouldn't even drop half of that and would keep the rest of it as profit.

They didn't do that the last time the government cut the tax. There is no reason to believe they will do that now.

[Deberg_1990]

Originally Posted by Donger

I thin that there's a good chance that oil will fall, as I don't believe that the present price is justified. But, pretty much the only way for us to influence the price is by cutting our demand.

Its never going to be below $2.75 ever again.

[007]

Originally Posted by frazod

Gas wasn't threatening to top $100 a fucking gallon in March of 2005.

Hell, if I'd waited one more month to get rid of the Mustang, I'd probably be driving a Civic now. I traded the Mustang for my Impala last March; gas started going through the roof a month later.

I am actually wondering at what point I will be forced to trade in the van for something more economical. Problem for me is, if I do that, I lose the ability to transport my entire family in one vehicle. we are 6 with two in boosters and one in an infant seat. full size can't even handle that yet.

[007]

Originally Posted by Donger

My vehicle gets ~35 mph on the highway and it can't tip over. Well, not easily, anyway.

What are you driving?