Wednesday, July 26, 2006
Gas Price Follies!!!!
Gas prices have hit $3 bucks a gallon (And counting!) and I've been noticing of late that there seems to be a few less pickups/SUV's in the parking lot at work these days. I've talked to a few of the former truckers and they've all admitted they were having a hard time putting almost $70 a tank full into a vehicle that get about 18mpg on the highway so they can drive to work in comfort. And that's why they were driving them. They liked being able to see OVER the cars in traffic and liked the roomy interiors. They weren't hauling anything. In fact, most of the truck beds I still in the lot are in pristine shape. The owners have, reluctantly, returned to driving the smaller sedans most of them own. I'm also seeing a few more hybrids in the lot, although if you crunch the numbers, they really don't pay off as well as some think.
In the late seventies, Jimmy Carter decontrolled petroleum pricing, and predictably, gas prices shot up. He was roundly cursed and berated for making that move. But a curious thing happened. With higher prices, people started buying smaller cars, and Detroit started downsizing their fleets. Eventually, gas prices started to stabilize due to soften demand for gas, and prices started getting reasonable again. Sadly for Jimmy Carter, he was but a memory as "The Gipper" was in office.
For quite a while, gasoline prices, in relation to consumer buying power, were actually pretty reasonable. Because of that, we've seen a return of big vehicles in the form of pickups and SUV's. Used to be, you only owned a pickup if you needed the load carrying power. They were plain Jane vehicles with no options and a harsh ride. Then Detroit start to gussie them up, with power options, cushy seats, and softer suspensions. People started to use them for every day driving. Then Ford, in a bid to grab some of GM's Suburban market, created the Expedition. It was actually a lash up job at first. They were only testing the market and didn't expect to sell all that many, as the Suburban class was sort of a niche vehicle at the time. To Ford's astonishment, sales took off, and even better, since the Expedition was based on their mature truck platform that had already been paid for engineering wise, they were making a ton of profit on each unit sold, and they became a major cash cow as sales skyrocketed. Foreign makers saw all this and wanted a piece of the action, each coming out with their own models. Bigger and better was the word. Even now, Toyota's running an ad campaign touting the size of their trucks. And they ARE big. But the gas price chickens have come home to roost, and Detroit's been losing market share and bleeding money. They were so focused on the pickup/SUV market, they've ignored their auto fleet, offering rehashed versions of mature chassis platforms year after year. Only recently have they begun to react by offering anything that could be remotely considered as "new." What's the latin phrase for a day late and dollar short????
Complain all you want. Accuse the oil companies/gas station owners/futures traders of gouging all you want. Sign those internet petitions. Boycott a certain brand for a day. You'll be wasting your time. It isn't going to make a bit of difference. The ONLY way prices will come back down is for Americans to use less gas. It truly is as simple as that. Nothing else will do it. It doesn't mean we're going to have to give up one whit of lifestyle points. All it means is that Americans will have to squeeze their fats asses into smaller cars, drive less and walk more. Yeah, yeah, yeah, I know, it'll be an "inconvenience" if you have to use a smaller car and walk more. Like my late great Mom used to tell me, "That's rough!!"
"The most exciting phrase to hear in science, the one that heralds new discoveries, is not 'Eureka!' (I found it!) but 'That's funny ..."
Isaac Asimov
Comments:
<< Home
Imo, it should be duly noted that China, and India, for just two, are consuming nearly as much or more petrolium products as the U.S. India a slightly larger than Maine. So to blame only Americans for simply wanting comfort, for this problem is unfair, imo.
And even if Detroit only produced Teensy Weensy Tonka Toys that went nowhere in the Minnesota winters unless they were on the end of a hook, prices would still stay high because of massive consumption in other countries.
But you're on the right track on the whole. Just share the blame is what I'm saying. Now why didn't I just say that earlier and save all your bandwidth?:) I'm Baaaack!:P
And even if Detroit only produced Teensy Weensy Tonka Toys that went nowhere in the Minnesota winters unless they were on the end of a hook, prices would still stay high because of massive consumption in other countries.
But you're on the right track on the whole. Just share the blame is what I'm saying. Now why didn't I just say that earlier and save all your bandwidth?:) I'm Baaaack!:P
That's all true sir. I do not dispute any of your facts.
My point remains the same. There's nothing we can do about those factors.
Most Amercans are oblivious to the fact that China and India are quickly becoming the 1000lb economic gorillas on the block, and that eventually, (And sooner then we think.) China's economic power will outstrip ours in the world economy. They've already gotten bigger than the European Union. And what the isolationists refuse to acknowledge is that we ARE in a world economy. If we refuse to deal with that fact, we'll be left in the dust, and in the future, our economy will compare to China's like England's economy compares to ours now.
My bottom line remains the same. The ONLY course of action for us is to find ways to reduce our use of crude oil in our economy. We'll have to do whatever it takes, including using less electricity, gasonline, etc. This DOES NOT mean we'll have to live in crude shacks and ride bicyles. It DOES mean we'll have to be wiser with our oil consumption.
Post a Comment
My point remains the same. There's nothing we can do about those factors.
Most Amercans are oblivious to the fact that China and India are quickly becoming the 1000lb economic gorillas on the block, and that eventually, (And sooner then we think.) China's economic power will outstrip ours in the world economy. They've already gotten bigger than the European Union. And what the isolationists refuse to acknowledge is that we ARE in a world economy. If we refuse to deal with that fact, we'll be left in the dust, and in the future, our economy will compare to China's like England's economy compares to ours now.
My bottom line remains the same. The ONLY course of action for us is to find ways to reduce our use of crude oil in our economy. We'll have to do whatever it takes, including using less electricity, gasonline, etc. This DOES NOT mean we'll have to live in crude shacks and ride bicyles. It DOES mean we'll have to be wiser with our oil consumption.
<< Home
