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Since our cars are getting better than 20+mpg on a bad day, we are stopping less. So less stopping means less gas/taxes are being paid. Think this is a cause for gas prices to be high?
Since our cars are getting better than 20+mpg on a bad day, we are stopping less. So less stopping means less gas/taxes are being paid. Think this is a cause for gas prices to be high?
No. Better gas mileage means you stop at the pump less often so all else equal would lower the price of gas.
No. Better gas mileage means you stop at the pump less often so all else equal would lower the price of gas.
Yes you would think that, but remembering a news report that some states are uping the state road tax to offset the lost that is cause from people stopping less. Same goes with federal tax too. You would think the supply and demand would play here, but it doesnt from my POV.
According to EIA data, we produce 6-9mil barrels a day, plus import another 9-12 from OPEC, so good day, we are putting in stock 20-22 million barrels a day, and eating up 16-18 a day. Other data suggested that we have a good stock in the uper 20s that are being produce and stocking rest off-shore and have a huge gloat. If we have been producing more that we are using, gas should never rise. We know that we will always produce more than we use anyways, so whats the next excuse?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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This is why our state has a tax on hybrids and electric vehicles now, because the portion of the gas tax paying for road maintenance is lost and they still use the roads. Gas is still somewhat tied to supply and demand, it's always been higher around the holidays, in summer when people go on roadtrips, when changing from summer/winter blend or back, and local increases are caused by refinery shutdowns. With gas still below $3/gallon, despite our recent tax increase (to offset lower use), I would not consider it to be high. We were paying $2.25 after Thanksgiving, now $2.65 (local Costco) but filling a 15 gallon tank on a car that gets 30 mpg is still under $40. To me that's very reasonable.
It's supply and demand, mostly fracking helped lower the cost of gasoline. It is very likely we will see a lot more fracking under the incoming administration.
Note also that high mpg cars, are small, uncomfortable for many, and more likely to have the occupants die when they crash.
Prices have to support fracking as the cost is generally a good bit higher. The goal of OPEC, Russia and oil producing nations is to keep prices out of the basement of $40 but not high enough to allow fracking to play a major role in supply disruption. The middle ground seems to be around $60 per barrel. It's not going to go away entirely but they want to minimize supply disruption and market share loss as much as possible. The only way to do that is to keep the tap flowing and keep prices at the point where fracking is less attractive.
Prices have to support fracking as the cost is generally a good bit higher. The goal of OPEC, Russia and oil producing nations is to keep prices out of the basement of $40 but not high enough to allow fracking to play a major role in supply disruption. The middle ground seems to be around $60 per barrel. It's not going to go away entirely but they want to minimize supply disruption and market share loss as much as possible. The only way to do that is to keep the tap flowing and keep prices at the point where fracking is less attractive.
So basically starve the fracking companies so they can keep their share of the market? or face the lost. So proves that even oil companies hate competition just as much as google. Cant beat'em, buy'em. Cant buy'em, than price starve them.
Prices have to support fracking as the cost is generally a good bit higher. The goal of OPEC, Russia and oil producing nations is to keep prices out of the basement of $40 but not high enough to allow fracking to play a major role in supply disruption. The middle ground seems to be around $60 per barrel. It's not going to go away entirely but they want to minimize supply disruption and market share loss as much as possible. The only way to do that is to keep the tap flowing and keep prices at the point where fracking is less attractive.
Good post, so many assume static technology despite it being so evident that the technology we have today will be wickedly inferior to that in a decade.
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prices have never been an issue. 
