For political, technological, and even demographic as well as economic reasons, don't expect American oil consumption to increase over 2007 levels. $3 gas is here to stay, and the days of the petrol-gulping SUVs and guzzlers may be numbered.
Last month's clunkers program, which saw nearly 700,000 guzzlers averaging 15.8 mpg exchanged for vehicles that were 58% more fuel efficient (25 mpg) was a sign of what's in store for the auto and petroleum industry.
"U.S. gasoline consumption fell more than 7% from its 2007 peak in the first quarter...Yes, that in part reflects the effects of the punishing economic downturn. But the slump actually has masked the beginning of a profound, long-term shift that will affect oil and auto stocks for years.
Thanks to a confluence of factors -- a legislative push to wean the nation off foreign oil, an end to very cheap fuel, a global rush toward fuel-efficient cars, fewer people driving to work and more citizens becoming concerned about the environment -- U.S. gasoline consumption might never surpass the high of the summer of 2007, when we guzzled 400 million gallons a day.
Unfortunately for U.S. drivers, $3 or more might be the new norm."
Barron's senior editor, Kopin Tan explains this phenomenon in a short video at the base of the article.
Editor's Note: Access to entire article may be time-limited.
Thanks to Mark Boshnack
FULL STORY: Drip, Dripping Away
Do Environmentalists Confuse Oil Production With Oil Demand?
Samantha Gross, the director of the Energy Security and Climate Initiative at the Brookings Institution, argues that the key to reducing emissions is to do the hard work of reducing oil demand rather than focusing on ending U.S. oil drilling.
Just What the Planet Needs: More Oil Production
A surge of oil from four countries—Norway, Guyana, Canada and Brazil—will more than compensate for slowing growth of U.S. oil production. The new sources might cause oil prices to dip to $50 a barrel and slow the transition to electric vehicles.
Plugging the Gap: Taxpayers Shoulder the Burden of Orphaned Oil and Gas Wells
Taxpayers, federal agencies, and tribal governments are working to address Arizona's orphaned oil and gas wells, which pose environmental and health risks, while advocates call for greater accountability from oil and gas companies.
Florida Considers Legalizing ADUs
Current state law allows — but doesn’t require — cities to permit accessory dwelling units in single-family residential neighborhoods.
Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing
Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?
HUD Announces Plan to Build Housing on Public Lands
The agency will identify federally owned parcels appropriate for housing development and streamline the regulatory process to lease or transfer land to housing authorities and nonprofit developers.
EPA Terminates $116 Million in Grants for Reducing Emissions from Construction Materials
C-MORE grants were earmarked for industry trade groups and universities.
BART Closes $35 Million Deficit
Cost control and revenue generation measures prevented service cuts.
The New Parisian Hearse is a Bicycle
Sleek, silent, and sustainable, a green trip to the graveyard has hit the streets of the French capital.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
City of Moreno Valley
Institute for Housing and Urban Development Studies (IHS)
City of Grandview
Harvard GSD Executive Education
City of Piedmont, CA
NYU Wagner Graduate School of Public Service
City of Cambridge, Maryland