Why Conserve When Gas is Cheap?
I’ve been fielding some questions lately from friends and relatives about the importance (and sensibility) of fuel conservation at a time when the price of oil is dipping below $50/bbl and a gallon of gasoline costs less than $2/gal.
It was just 4 short months ago that the gasoline seemed destined for $5+/gal, and the cost of a barrel of oil was sure to climb to over $200/bbl. American consumers are enjoying “cheap gas” again, and some are already questioning the painful lessons of the summer. (For the record, gas prices are still twice as high as ten years ago when a gallon of gas cost you right around $1/gal)
Here are my thoughts:
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This too shall pass. Oil prices will not remain low for very long unless there is a major shift in the way our transportation sector is powered. Our dependency on oil is still nearly absolute, and there are major forces already acting to raise the price of oil.
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OPEC is cutting production by millions of barrels per day. In the past these kinds of cuts were successfully used to raise the price of oil world-wide. (I say “in the past”, read below…)
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Focusing too closely on the cost of fuel at the pumps today or in recent weeks ignores the inherent weaknesses in the capacity of our existing production, pipeline, refining and distribution systems. If consumers return to unbridled consumption, there is stil not enough capacity to meet that demand.
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Security experts have warned that one successful attack on major oil infrastructure can still have catastrophic effects on supply, which will immediately drive the costs to record highs.
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Improving fuel-efficiency appeals to a diverse group of people; including the penny-pinchers, environmentalists, and the national security hawks. The low cost of oil actually worries two out of the three, and the third is still feeling compelled to save.
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Environmentalists fear that cheap gas acts as a green-light to consumers to continue to buy gas-guzzling and CO2 belching SUV’s they don’t really need, and to slip back and continue wasteful consumption.
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National security hawks understand that the market is fragile and is still run by countries and organizations that openly wish to do us harm. Low-oil prices do hurt the war-chests of some state sponsors of terrorism and radicalized Islam, but these same players have enjoyed several years of record profits and have amassed enough fortune that they can wait-out any temporary drop in oil prices. We only reach security goals by replacing oil-based fuels with alternative sources of fuel and energy.
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And still the penny-pinchers need to save money. The economic trouble that exists alongside the cheap oil prices means that money is still tight, in spite of cheaper fuel.
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- The real damage to our economy is not yet realized, and we’ll need to continue to conserve and produce alternative sources of energy just to survive.
Personally, I think that the oil cartel has overplayed their hand. I think world-wide consumer confidence is shattered, and there will be a period of suffering for oil producers as the rest of the world works to replace them.
I think more than anything, last summers outrageous jump in fuel costs was an education for Americans, that our system truly is out of control, and that it’s not sustainable. It was an expensive education, to be sure, but one that may pay dividends as we continue to conserve as we develop and implement replacement technologies and fuels to ween ourselves off the oil tit.
US Govt gives automakers $25B in loans; drops fuel-efficiency mandate
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By Peter Forman |
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The United States continues to “perpetuate” a broken auto industry. Because of pressure from Detroit, unions, and Michigan lawmakers, the “Big Three” auto makers have been insulated from the real market-place of competition for the past 30 years. The Japanese and Germans have figured out how to build cars in the American South profitably–but not the Big Three. That’s fine and good except now we have a completely broken auto industry that is unable to compete. Now exposed to declining demand and lacking access to “cheap” capital, they are likely to disappear in their current forms–even after we spend untold billions in short-term assistance. The move, aimed at ending what the White House called partisan “gridlock,” represents a significant escalation in the political battle over aid to the Big Three auto makers. This is ahead of an expected showdown next week in Congress between Democrats and Republicans. While we are unlikely to ever see a return of these funds, the car companies could at least agree to manufacture all cars beginning in 2012 with flex-fuel compatibility and continues progress towards EVs (electric vehicles). Without at least those commitments, what will we have to show for this “investment”? Demand that your Congressperson and Senator act–call today! |
Used w/ Permission: MoveBeyondOil.org
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“Keep Your Receipt” Reminder Magnet
One of the comments that I hear from time to time by FuelClinic.com users is “I have a problem remembering to get my receipt!” We’re working on ways you can record your transactions remotely, right from the pump; using your mobile phone and a to-be-release mobile version of FuelClinic, send a “tweet” to us via Twitter, or just a text message.
But for those users not so interested in mobile technology, we’ve developed a decidedly low-tech (albeit good-lookin’) way to help remind you to grab your receipt before you leave the pump.
About a month ago I had a local sign-shop create a short-run of these magnets for family and friends, with the intention that they will help people to remember and get their receipt before leaving the pump.
It’s been suggested that I make these available to all users, to sell them on the website so everyone can display them on their gas tank hatch and use them to help remember the receipt. So I checked in to getting a commercial run of these created, and figured the price per magnet would be about $5/ea. after manufacturing, packaging, and mailing them.
If you’d like to have a magnet like this for your vehicle(s), and think $5 is something you could part with to get one, let me know by leaving a comment on this thread.
I’m just judging interest at this point - there is no obligation (they don’t even exist yet).
Citizens for Energy Freedom Founding Conference, January 2009 at Florida Atlantic University
Join me at the The Citizens for Energy Freedom Founding Conference this January at Florida Atlantic University for the founding meeting of this new grassroots energy-independence campaign.
The Citizens for Energy Freedom Founding Conference
January 17th & 18th, 2009
at Florida Atlantic University, Jupiter, Florida
Announced last month at the Energy Freedom Summit in Chicago, this two day convention will feature a series of talks and panels by leading experts on energy, economics, technology, national security, and politics.
Invited guests include:
- Sen. Mel Martinez
- Sen. Bill Nelson
- Sen. Hillary Clinton
- and Former Speaker Newt Gingrich
If tailored after the Energy Freedom Summit, this will be an intense two day collection of industry and government experts at panels, presentations, discussions, and workshops focused tightly on educating and motivating attendees to help organize to support a workable energy independence plan. Bring a notebook!
Sign up today at the bottom of this page to reserve your seat at this conference.
I’ve already reserved mine. :)
Dude, Where’s My [Electric] Car!?!!
Another great find tonight, and I can’t believe this one snuck past me. Thanks to the guys at PowrTalk I think I just found my next car. And it’s already monogramed for me!
Ready to hit the American market in 2010, Miles Electric Vehicles 4-Door Sedan is the first practical, affordable, 4-door, high-way-speed rated, all-electric vehicle you can buy (if you can still get a car loan…) for around $35K USD.
According to the Miles EV website:
“In early 2004, concerned by growing environmental problems linked to micro-carbon emissions, Miles Rubin set out to make a difference – by developing a line of safe, affordable, all electric vehicles that produce zero emissions. He centered the company’s activities in Tianjin, China, where the battery industry had expert manufacturing experience. Since then, Miles Electric Vehicles has begun importing low speed vehicles and is working to develop a highway speed, all-electric, midsize sedan.”
“The MILES XS500 prototype sedan currently under development will top 80mph and travel over 120 miles on a single charge – for about the cost of a gallon of gas.”
“Miles Electric Vehicles is owned by Miles Automotive Group, Ltd, and headquartered at the historic Santa Monica Airport in Santa Monica, CA.”
Hopefully I can get in touch with my local rep for some additional information and to arrange a demonstration. I’ll keep you posted.
DOD’s Energy Plan is Running on “E”
Tonight, while scouring the web for the best sources of energy and new fuels information I can find for you, I stumbled upon a gem of a blog ( DOD Energy Blog ) that focuses on the impact of our energy crisis on the Department of Defense - the worlds single largest oil consumer.
And what perfect timing! First up, a post about a report that will get us all right up to speed on current DOD energy issues.
I’m not exaggerating when I tell you Dr. Sohbet Karbuz’s ”Can the U.S. military move to renewable fuels?” in last month’s Bulletin of Atomic Scientists is perhaps the best, most concise summation of the military’s fuel concerns in 2008.
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Please Support FuelClinic.com on IdeaBlob.com
Today I learned about IdeaBlob.com - a start-up idea website that has a monthly contest that awards $10K for the idea voted to be the best by members of the site.
If you’d like to help support the continued development of FuelClinic, please visit IdeaBlob.com and participate by voting up my idea, making comments, providing advice, and promoting the site to your friends, social networks, etc.
While you are there, look around at some of the other great ideas that could use your support.
What Should Obama’s Energy Policy Include/Exclude?
Senator Obama ran a brilliant campaign and yesterday a majority of Americans voted him in to the Office of the President of the United States. While there is certainly reason to celebrate today, in a few short months he will inherit a failed energy policy, one in desperate need of change – but exactly what kind of change?
The Obama-Biden comprehensive New Energy for America plan will:
+ Provide short-term relief to American families facing pain at the pump
+ Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future.
+ Within 10 years save more oil than we currently import from the Middle East and Venezuela combined.
+ Put 1 million Plug-In Hybrid cars — cars that can get up to 150 miles per gallon — on the road by 2015, cars that we will work to make sure are built here in America.
+ Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.
+ Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.
In the past Obama has been a friend of the ethanol industry, supporting the subsidies that enabled the young industry to flourish in his home state (and surrounding states) early by encouraging private investment and innovation. He recently said corn ethanol is not “optimal” when compared with sugar cane ethanol, a comparison that is not entirely fair, since corn ethanol production produces feed for livestock as a byproduct.
Will he continue to support the ethanol subsidies, and work to raise the “blend wall” on E10 from 10% to a higher figure? (Ethanol production is about to “cap” out due to the lack of market for it’s excess product.) There is no mention of the Flex-Fuel Vehicle in the bullet points above, although it would be the cheapest fastest method for reducing (in a meaningful way) America’s transportation reliance on oil.
So, besides encouraging fuel conservation and mandating FFV’s w/ the Open Fuels Standard Act, what else should President Obama’s energy policy include and exclude?
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Will Improving Gas Mileage Now Help or Hurt the “Green” Movement in the Long Term?
I believe that improving energy efficiency is the “low hanging fruit” in this energy crisis - and obviously should be the first step in any reasonable plan to fix the way we power civilization.
I attended an Energy Freedom Conference last weekend in Chicago with the idea that energy conservation (esp. fuel conservation thru eco-driving techniques learned using websites like FuelClinic.com ) is a key component to helping solve our problems.
I was surprised by the several attendees I talked with who believe improved fuel efficiency was not to our long-term best interest, saying it may help to reduce prices but at the same time would reduce the public’s interest (and long-term investment) in actually fixing the problem with alternative fuels, etc…
I’m curious what others here think - does energy conservation work to our advantage, or does it actually hurt the green movement in the long term by reducing investment?
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MapMPG - How Far will a Gallon of Gas Take You?
How far you can travel on a gallon of gas? What if you improved your mileage by 20%? What if you bought a new car - how does that compare to your existing car? This isn’t hard to figure out, and FuelClinic.com will do this for you, but what if you wanted to see what this looks like on a map?
Today I received an interesting note from Jay Hoffman at ESRI about a new website they are beta testing called MapMPG.com
ESRI has an interesting new web site called MapMPG.com that maps the distance two different cars can drive on one gallon of gas. This rather unique and useful application compares the mpg’s on your specific neighborhood streets.
I compared my 2001 Toyota Tacoma to a newer Toyota Prius to produce this map of my local area.
Select one vehicle as Vehicle 1, and another as Vehicle 2, enter a street address and zip code, and you’ll see a graphic representation of how far you can get on one gallon of gas, based on the roads in your area.
Right now the site uses EPA estimated MPG figures for each vehicle, but Mr. Hoffman indicated that his team is seeking comments and may be able to modify the interface to be more usable.
ESRI is a world-leader in digital mapping for large organizations and government agencies, and has been doing scientific GIS and mapping long before anyone else.
What do you think? Comments are open.
The Case for “Future-Proof” Flex Fuel Vehicles (FFVs)
Over the next few years you’ll see a change at your local gas stations as more alcohol-blended fuel pumps are installed across the nation. Alcohol-blended fuels like E85 are already available in some areas, and more are coming to market as more FFVs are sold in the United States.
US based manufacturers have committed to making 50% of their new autos FFVs by 2010 and and 85% by 2012. In addition, there is proposed legislation called the Open Fuel Standard Act which will mandate all cars sold in America meet the same goals, so this will mean that all imports sold in the US will meet the same FFV standard. (You can help support this legislation here.)
Since FFV is an widely available and mature technology (there are already millions of FFVs on the road in the US - you may be driving one), adding the capability to all new vehicles sold in the US doesn’t add notably to the cost of making new cars (usually about $100) - and provides a way for auto manufactures to “green-up” their product lines.
Drivers of FFVs will be able to choose what fuel to buy, based on price at the pump, performance needs, personal preference, etc. - just like shopping for any other commodity. You’ll be able to mix E85 with E10 (the current flavor of gasoline almost everywhere in the US) and newer alternative blends like E25 or M50. Using FFV technology, your car will automatically adjust your engines settings to run properly on any combination of gasoline and alcohol fuels.
Unlike more exotic alternative fuels like compressed hydrogen or natural gas, drivers of FFVs are not stuck on a virtual “energy island” of specialized refueling stations. You will be able to travel freely, just like today, as far and wide as you like - choosing your favorite blend of alcohol fuels as you go - or using straight gasoline where no other choice exists.
So if your next car has an engine that burns liquid fuel, makes sure it is “future proof” and check that it’s a Flex-Fuel Vehicle before you buy it, or else you’ll be left without options at the pump when the alcohol-blended fuels hit the wider market.
KillerStartups Reviews: FuelClinic.com
FuelClinic.com was recently reviewed at KillerStartups.com, a website that collects information about young web startups and publishes short reviews. People can show their support by “voting” for their favorite site - just click the “+” sign under the vote tally near the top left side of the page. Sites with more votes get more prominently displayed.
