US Gas Demand has likely peaked for good

[Capt Worley PE]

I'm not agreeing with some of this, but it makes for interesting reading.

NEW YORK — The world’s biggest gas-guzzling nation has limits after all.
After seven decades of mostly uninterrupted growth, U.S. gasoline demand is at the start of a long-term decline. By 2030, Americans will burn at least 20 percent less gasoline than today, experts say, even as millions of more cars clog the roads.

The country’s thirst for gasoline is shrinking as cars and trucks become more fuel-efficient, the government mandates the use of more ethanol and people drive less.

“A combination of demographic change and policy change means the heady days of gasoline growing in the U.S. are over,” says Daniel Yergin, chairman of IHS Cambridge Energy Research Associates and author of a Pulitzer Prize-winning history of the oil industry.

This isn’t the first time in U.S. history that gasoline demand has fallen, at least temporarily. Drivers typically cut back during recessions, then hit the road again when the economy picks up. Indeed, the Great Recession was the chief reason demand fell sharply in 2008.

But this time looks different. Government and industry officials – including the CEO of Exxon Mobil – say U.S. gasoline demand has peaked for good. It has declined four years in a row and will not reach the 2006 level again, even when the economy fully recovers.

Read more: http://www.thestate.com/2010/12/21/1614275...l#ixzz18lHyj96U

 

[Supe]

And of course, gas prices around here are at an all time high.

 

[jv21]

And of course, gas prices around here are at an all time high.

Really? So when the nation was at a high of about $4 / gal a couple years ago, you guys were just hanging out with ~$3/gal gas and told no one?

 

[FusionWhite]

This is a good thing right? The less oil we have to import the better? Im not convinced this will happen but I guess I can keep my fingers crossed.

 

[Capt Worley PE]

This is a good thing right? The less oil we have to import the better? Im not convinced this will happen but I guess I can keep my fingers crossed.

Yeah, it would be a good thing, but I have doubts it'll happen, too.

But articles like this are like studies. I'm sure there is another one out there that said demand rose in Novemeber or something.

 

[jv21]

From my little microcosm, I think I would agree with this. I've known tons of people who have gotten rid of their SUV's and full size pick up trucks and drive more fuel efficient vehicles. I also know tons of people who have reduced from multiple cars to only one for the family. I think the death nail was struck in the summer of 2008 when we were paying $4 a gallon, and people just found a different way of life. I know we did in the sapper household. We decreased our road trips, got more fuel efficient cars, and now, actually we are a single vehicle family. It is a simpler life. There are times when one car sucks, but quite honestly, the fact that I only have one car to maintain, one car to feul, one car to inspect, one car to make a payment on makes it so much more worthwhile than the convenience of my wife and I having our own cars.
I know this isn't a feasible option for everybody, probably even not for the majority. It just works for us, and it is worth it.

I have 2 just for myself. A daily driver car and a ford ranger for hauling stuff. The truck is paid off, had a lot of miles, and when I bought my car, I just didn't see the point in getting rid of it (not worth much) and I use it regularly. To each their own i guess. I like cars, their fun and kind of a hobby. I can only drive one at a time, so as long as they are paid for, their isn't much of an anual cost... That is, if I drive 15,000 miles per year, it's the same if I put 15k on one vehicle or 2.

 

[snickerd3]

we downsized to a single family vehicle since mr snick has a company car. The 2nd car just sat on the driveway since we use the company car for errands and things around town. We were spending ~$300/yr (car insurance) for it to just sit there incase we needed a second car for some reason.

 

[Supe]

And of course, gas prices around here are at an all time high.

Really? So when the nation was at a high of about $4 / gal a couple years ago, you guys were just hanging out with ~$3/gal gas and told no one?

So I embellished a little, but, gas prices here are on average around 30 cents higher than when I moved here in July '09.

 

[jv21]

And of course, gas prices around here are at an all time high.

Really? So when the nation was at a high of about $4 / gal a couple years ago, you guys were just hanging out with ~$3/gal gas and told no one?

So I embellished a little, but, gas prices here are on average around 30 cents higher than when I moved here in July '09.

I hate to see your cost estimates...

 

[Supe]

Don't need to do much estimating to look at a receipt and see $2.5x/gallon turn into $2.9x/gallon 1.5 years later in this location. EIA seems to have similar findings:

EIA expects regular-grade motor gasoline retail prices to average $2.88 per gallon this winter, 22 cents per gallon higher than last winter. Projected retail diesel fuel prices average $3.14 per gallon this winter, an increase of 35 cents per gallon over last winter, while residential heating oil prices average $3.17 per gallon this winter. In 2011, higher crude oil prices combined with higher refiner margins push annual average prices for motor gasoline and diesel fuel to $3.00 and $3.23 per gallon, respectively.

Source: http://www.eia.doe.gov/emeu/steo/pub/contents.html

 

[Charlrgs]

I hope this is not true. In IL our state roads our maintained with motor fuel taxes. Less fuel purchased means less money and our roads/bridges are some the worst in the country already.