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.
“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).
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?
Comments are open, but moderated to reduce spam.
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.
Supply and Demand: Oil Prices Dropping
You’ve probably noticed oil and gas prices are the lowest they’ve been all year. Demand has slipped not just here at home, but around the world. Even China’s demand is showing signs of cooling.
Source: IHT.com
At the beginning of the year, OPEC producers felt confident that strong economic growth and tight supplies would keep oil prices high. When oil crossed the $100-a-barrel threshold in February, the cartel’s president blamed speculators and said there was not much OPEC could do.
But now, panic is gripping producers as prices drop. Oil is down by half since July, and the speed of the decline has stunned oil-rich governments that have become dependent on high prices.
OPEC is worried that prices are going to slip too far. This, of course is great news for consumers, who have been suffering for months paying balooning prices at the pump. It’s also a confirmation that basic rules of supply and demand still work to determine the cost of commodities like fuel. Of course lower fuel prices would be even more welcome if not for the global economic downturn.
Were fuel prices a contributor to the economic crisis - a perfect storm of the housing credit and oil bubbles? I’m sure that high fuel prices helped push consumer confidence down. How can you be optimistic about weathering your other economic problems when every day the price of fuel rises, and never seems to fall. High fuel costs may have pushed us over the economic edge we have be teetering at for the last few years.
Early in the year there were numerous reports from government transportation agencies and commercial groups like AAA that Americans were curtailing driving, driving less that they had the year before, indicating the first decrease in driving in decades. In any case, the oil market is finally reacting to months of run-ups, where we found ourselves paying over $140 for a barrel of oil just a few short months ago. We stopped buying as much, and the price slips.
Now OPEC, the largest oil cartel, may attempt to flex its muscle to prop up falling oil prices and protect their profits, by purposely reducing oil supply.
Is it possible to demonstrate more clearly the need to find alternative supplies for energy than this? Is it possible to demonstrate more clearly the effect of energy conservation than this? We all participated in the grandest supply and demand experiment of modern history.
Conservation works - and works quickly, without any new technology required. Finding alternative sources of energy, or just stating the intention of finding alternative sources of oil, also works to reduce prices. It doesn’t take years, as predicted by politicians from each side. Speculators and cartels are discouraged when they hear the largest customer has decided to shop around a little. Sellers tend to sweeten the deal in order to keep the customer. It’s less about actual drops of oil, and more about managing human greed. Let’s not be lulled back into old habits by lower prices.
Let’s also remember that relatively small changes in demand led to fairly substantial changes in price. It’s true that Americans are driving less than last year - but it’s only by a small percentage. Look around, there are cars everywhere - moving around all hours of the day. American’s haven’t abandoned their cars, they are just using them a little less, or using them a little more efficiently. I’d like to think we contributed, however slightly.
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About.com: Hybrid Cars & Alt Fuels gets to know FuelClinic
Welcome About.com Readers!
This week I had the pleasure to answer a few questions from About.com’s Christine & Scott Gable regarding FuelClinic for their website and blog Hybrid Cars & Alt Fuels.
Today I was so happy to see that they not only wrote about FuelClinic in their blog, but basically published the entire interview on a seperate page - giving FuelClinic a much greater chance to reach out to more new users than I had previously hoped. Fantastic!
I originally contacted Christine & Scott to request permission to include some of their great eco-driving tips on our page Driving Tips for Better Fuel Economy. They graciously agreed to allow me to use their tips, and at the same time asked if I’d be available to answer a few questions about the website. I said “of course!”
Christine & Scott are, like me, advocates for the hybrid revolution that is sweeping this country. Their website offers a great deal of depth and perspective into the subject, and I recommend several of their pages as “must reads”:
- Thrifty-Drive: Eco-driving with Scott: Driving Techniques to Save Fuel for Some Serious MPGs
- Top 20 Simplest & Easiest Ways to Drive Efficiently
- It’s Winter—What’s Happened to my Car’s Fuel Economy?
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Season 28 of PBS’ MotorWeek Holds Keys to Fuel Efficiency
Owings Mills, MD — With high gas prices fueling significant changes in how Americans buy and drive cars, PBS’ award-winning automotive series MotorWeek launches its 28th season focused on vehicle technology that is fuel efficient, eco-friendly and reshaping the auto industry.
Beginning Saturday, September 6th (check local listings) MotorWeek rolls out its “Clean Power Drive Season” with all-new, consumer-oriented content including Energy Smart Road Tests, expanded fuel efficiency ratings, interactive opportunities for viewers and audio podcasts. A special “Clean Power Drive” edition of MotorWeek, airing October 18th (check local listings), takes a realistic look at fuel economy currently available and what the future holds for automotives.
“MotorWeek is tuned in to what consumers want in their automotives – comfort, versatility, performance, and now more than ever fuel economy,” said host and executive producer John H. Davis. “Even if gas prices drop, consumers know it is probably a temporary reprieve. They are demanding significant gains in fuel efficiency, without giving up capabilities. That’s a tall order that all automotive companies will have to meet just to survive.”
All 52 new episodes will feature MotorWeek’s traditional Road Tests, along with exclusive Energy Smart Road Tests which will highlight new vehicles that best blend practicality and affordability with increases in fuel economy. Many small cars will be included, as well as new hybrid, diesel and alternative fuel vehicles, and other new technologies to increase fuel efficiency.
Also new this season, viewers will have more tools to determine a vehicle’s fuel efficiency. Carbon Footprint ratings will be included in many of the automotive reviews, indicating how much carbon dioxide is emitted annually by a vehicle.
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FORD TESTS SHOW ECO-DRIVING CAN IMPROVE FUEL ECONOMY BY AN AVERAGE OF 24 PERCENT
PHOENIX, Ariz., Aug. 27, 2008 – Tests performed by Ford Motor Company show that motorists coached by eco-driving experts can significantly improve the fuel economy performance of their cars, trucks or SUVs.
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Eco-driving refers to specific driving behaviors that can improve fuel economy, save money, reduce greenhouse gas emissions and promote safe driving. Ford and Phoenix-based Pro Formance Group have teamed up to pilot an eco-driving program for fleet customers. The program would employ certified master trainers to deliver hands-on coaching to maximize mileage in everyday driving.
Over a four-day period, Ford and the Pro Formance drivers conducted validation tests using volunteers from Phoenix who were given individual coaching on specific driving behaviors. The Sports Car Club of America verified the results, which showed an average 24 percent improvement in fuel economy as a result of hands-on eco-driving training.
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Scania Training Sveaskog Truckers in Eco-Driving
Source: Green Car Congress
Scania is now running a training course in fuel-efficient driving for trucking companies that haul timber in parts of central Sweden for the Sveaskog forest product company. Results indicate that after training, the drivers can reduce their fuel consumption by 9%. For these truckers alone, this would represent 8,000 tonnes less carbon dioxide emissions each year.
Scania’s driver training course is designed to meet the requirements of a new European Union directive on mandatory periodic training of professional drivers.
Our timber transports by truck total about 70 million kilometers a year. If their fuel consumption can be lowered by 9 percent, this will save more than 3 liters of diesel fuel and 8,000 tonnes of carbon dioxide emissions.
—Olof Johansson, Senior Vice President Environment and Social Responsibility at Sveaskog
Sveaskog’s investment in driver training is one element of the State-owned company’s efforts to reduce the environmental impact of its silviculture operations. Sveaskog has signed an agreement with Scania Sweden which covers training in safe, fuel-efficient driving for about one hundred drivers employed by trucking companies responsible for hauling timber for Sveaskog in the Bergslagen and Södermanland regions of central Sweden.
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AP: Prices Up, Gas Consumption Down
#1 Best Fuel Saving Tip Ever - “Simmer Down Now!”
It seems I’m always getting asked “Doc, what’s the best way to improve my fuel mileage?” - and the simple answer is the same as it always way: Simmer Down Now!
Source: http://www.progressive.com/auto-tech/hypermiling.aspx
Clearly, hypermilers are getting great results with their efforts, says energy-efficiency expert Brian Duddy, senior program manager at the Golisano Institute for Sustainability at Rochester Institute of Technology. Ultimately, it comes down to these fundamentals of driving: Go easy. Slow down. “The biggest way to save on fuel is reducing your speed,” he says. “Many experts, including those from the U.S. Environmental Protection Agency, have demonstrated that, for most vehicles, optimal fuel economy decreases rapidly at speeds over 60 mph. With gas at over $4 a gallon, for every 5 mph you drive over 60, you’re paying an additional 30 cents per gallon for gas.”
Notice a nice link to my favorite website at the bottom of that article? :)
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NozzleRage
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