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NEW YORK (CNNMoney.com) -- The federal government is looking to raise corporate average fuel economy requirements to something between 47 and 62 miles per gallon by 2025, according to documents released Friday by the National Highway Traffic Safety Administration and the Environmental Protection Agency.
This would radically change the face of automobiles in a single pen stroke. The government needs to stay out of this and let the market dictate what people want to buy. CAFE doesn't exactly have a glorious history of actually doing what they intend anyway. The old rules almost single handedly killed the wagon and gave rise to the minivan/SUV craze which actually decreased fuel economy in the U.S. versus if they had left it alone.
Well like it or dislike it change is a coming. There has really not been any significant oil strikes in the oil field in the last 10 years, production of the oil fields that are out there have been decreasing while the demand for oil is increasing from china and other emerging markets, this country is in for a vary rude awakening if the experts are right and peak oil (the production of oil) was a few years ago. It is predicted that 5 to 10 dollar oil is just around the corner, yea we are all a little spoiled it'll become a national security issue within 5 years, so some oil experts tell us.
Well, peak oil and how long things will last are all dependent on which "experts" you talk to. I agree that change and big change is coming and we will see it in our lifetime. What I disagree with is the government mandating things like CAFE as the results have never been what they expected. Let the manufacturers produce the vehicles people want to buy and let the market drive us.
Where we are at is way more dependant on foreign oil than ever before on a shakey economy that's trillions of dollars in debt with 5 to 10 dollar a gallon gasoline only a few years away, hang on cause it's gona be a rocky ride. Ya may wana consider having a high MPG commuter tucked in your garage, it may come in handy before you know it.
Where we are at is way more dependant on foreign oil than ever before on a shakey economy that's trillions of dollars in debt with 5 to 10 dollar a gallon gasoline only a few years away, hang on cause it's gona be a rocky ride. Ya may wana consider having a high MPG commuter tucked in your garage, it may come in handy before you know it.
It's part of my job managing fleets to look at fuel price futures. Obviously no one knows the future and a war, hurricane, etc. can upset the numbers, but over the next 10 years virtually all sources peg regular gasoline prices rising year over year and then settling in the $3 - $4 range by 2020. Adjusted for inflation, this shows a definite rise in prices, but nothing even close to what we saw in 2008. So, without any major outside influence, you won't be seeing $5 gas, let alone $10 gas.
The problem with these "predictions" about gas going to $10 a gallon is that they fail to mention that the country will essentially grind to a hault overnight. EVERYTHING is shipped by truck and the prices of EVERYTHING are dependent on predictability of fuel pricing built into the contracts. If fuel hits $10 per gallon, buying gas will be the least of our concerns as the entire national shipping infrastucture would break down and the price of all goods would almost double assuming they could even still be shipped. When you talk about $10 gas in the next 5 or 10 years, you aren't talking about pain at the pump, you are talking about the end of society as we know it and at that point, having an old Civic stashed in the garage really won't matter.
Edit: Also, while we do import roughly 58% of all of our oil, only 10% is sourced from the volatile Middle East and even then we only import from two countries there, Saudi Arabia and Iraq. The vast majority of our oil imports are from Western Hemisphere nations and primarily Mexico and Canada. The remaining is made up of African nations and Russia. The situation is a matter of national security, there is no doubt, but I don't think people really understand where the oil comes from. For instance, domestic production combined with Mexico and Canda makes up almost 70% of our oil.
3 to 4 dollar gas prices untill 2020 is wishfull thanking, the price has jumped 30 cents in the last year while coming out of the worst recession/depression since the great depression. If we don't go in a double dip recession we will see 4 dollar gas by next year. The United States isn't buying as much oil overseas because China India and other emerging country's are agresively buying up stockpiles of oil all over the world, the day's of a oil based economy is a dangerous stradegy in times like these. While everyone talks about bad credit and home loans the 4$ plus oil collapsed our economy as much as anythang and your correct in saying 5 to 10 dollar gas is gona be rough. We shall see I just don't believe it's gona be 2020 before it happens vary few hedge fund managers believe that either.
It's part of my job managing fleets to look at fuel price futures. Obviously no one knows the future and a war, hurricane, etc. can upset the numbers, but over the next 10 years virtually all sources peg regular gasoline prices rising year over year and then settling in the $3 - $4 range by 2020. Adjusted for inflation, this shows a definite rise in prices, but nothing even close to what we saw in 2008. So, without any major outside influence, you won't be seeing $5 gas, let alone $10 gas.
The problem with these "predictions" about gas going to $10 a gallon is that they fail to mention that the country will essentially grind to a hault overnight. EVERYTHING is shipped by truck and the prices of EVERYTHING are dependent on predictability of fuel pricing built into the contracts. If fuel hits $10 per gallon, buying gas will be the least of our concerns as the entire national shipping infrastucture would break down and the price of all goods would almost double assuming they could even still be shipped. When you talk about $10 gas in the next 5 or 10 years, you aren't talking about pain at the pump, you are talking about the end of society as we know it and at that point, having an old Civic stashed in the garage really won't matter.
Edit: Also, while we do import roughly 58% of all of our oil, only 10% is sourced from the volatile Middle East and even then we only import from two countries there, Saudi Arabia and Iraq. The vast majority of our oil imports are from Western Hemisphere nations and primarily Mexico and Canada. The remaining is made up of African nations and Russia. The situation is a matter of national security, there is no doubt, but I don't think people really understand where the oil comes from. For instance, domestic production combined with Mexico and Canda makes up almost 70% of our oil.
Alot of where we get outr oi has to do with teh refining capaity in the US really.most sweet crude capsity. But lookig at projects goig on now gives a clue where its headed. Existing refing doubling in capacity located near coast . The abilty to refine sour srude as well as sand tars and pipeline to transport it. Huge increases in LNG terminals in shippng. A increase in use of rail for long distance transport because it more effcient and will be getting cheaper and cheaper with time in comparison.Its planned because of the need for crude to dominate for anther 50 years not just because of fuels but the other 19000 other esentail products coming from it.There is alot to replace based on crude .
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