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Transportation Earth United States

Americans Rejoice At Lower Gas Prices 334

HughPickens.com writes Drivers across America are rejoicing at falling gasoline prices as pumps across the country dip below $3 a gallon. According to Sharon E. Burke while it's nice to get the break at the gas pump and the economic benefits of an energy boom at home, the national security price of oil remains high and the United States should be doing everything it can to diversify global energy suppliers. Ultimately, the only way to solve our long term energy problem is to make a sustained, long-term investment in the alternatives to petroleum. But October saw a 52 percent jump in Jeep SUV sales and a 36 percent rise in Ram trucks while some hybrid and electric vehicle sales fell at the same time. "This is like putting a Big Mac in front of people who need to diet or watch their cholesterol," says Anthony Perl. "Some people might have the willpower to stick with their program, and some people will wait until their first heart attack before committing to a diet—but if we do that at a planetary scale it will be pretty traumatic."

Nicholas St. Fleur writes at The Atlantic that low oil prices may also undermine the message from the UN's climate panel. The price drop comes after the UN declared earlier this week that fossil fuel emissions must drop to zero by the end of the century in order to keep global temperatures in check. "I don't think people will see the urgency of dealing with fossil fuels today," says Perl. Falling oil prices may also deter businesses from switching to energy-saving technology, as a 2006 study in the Energy Journal suggested. Saving several pennies at the pump, Perl says, may tempt Americans away from actions that can lead to a sustainable, post-carbon future.
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Americans Rejoice At Lower Gas Prices

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  • The jeep stats are way out to lunch and have nothing to do with low price of gas. Jeep has been the start of FCA for quite some time now, not just recently.
    • Agreed.

      Maybe if there were talking about full size SUV sales in general they would have a point. With cheap gas, buying a gas guzzler makes more sense.

      Of course, the number of miles Americans have been driving have been falling for the past 5 years. Partly this is due to the internet which allows people to schedule themselves more efficiently, making few trips.

  • by msobkow ( 48369 ) on Saturday November 08, 2014 @08:33AM (#48339981) Homepage Journal

    I miss the good ole' days when Slashdot was about technology, not navel-gazing bullshit about American politics and policy. :(

    • Re: (Score:2, Insightful)

      I...I agree. There is so much derp here today that I feel /. is in contest with CNN for most yawns per minute.

    • The entire point of the article is that lower gas prices are going to put the breaks on a massive energy tech boom. To coin another /. meme, rtfs (read the _fine_ summary) :P
    • Technology News for Nerds? Not so much.

      Lately its more like "Generic News for Americans". Let the standard news channels flog this crap out, i dont come to /. to read CNN.

      • by Rob Y. ( 110975 ) on Saturday November 08, 2014 @11:15AM (#48340625)

        Except that the politics of climate change denial have a definite scientific/technological angle. So do the potential solutions to the problem. It's not as if Slashdot were covering abortion politics - or gun politics. This is about science folks - much as those who want to deny the problem don't want it to be...

        For what it's worth, there's a lot of math/science in economics too. The much vaunted Laffer curve, for example, explicitly postulates that when taxes are too low, lowering them further just reduces revenue. Yet the right-wing think tanks that promoted the supply-side 'ideas' behind that curve only ever talk about the paradoxical part of the curve where raising taxes theoretically reduces revenue. What they don't say is that experience has shown that that part of the curve occurs with marginal rates north of the 70% range they were in when Reagan lowered taxes. Seems those tax cuts didn't pay for themselves - yet Republican pols almost unanimously assert that lowering taxes from today's much lower rates would pay for themselves - or create jobs - or make Jesus happy. There's a trade off between evidence-based policy and ideology-based politics, and that subject is perfectly appropriate for a science/tech site.

  • by OzPeter ( 195038 ) on Saturday November 08, 2014 @08:54AM (#48340055)

    Recently I tried the BBC Fuel Price Calculator [bbc.com], which for where I am at $2.55/Gallon indicates that the only place I can get gas cheaper is either Nigeria or Venezuela.

  • by Alain Williams ( 2972 ) <addw@phcomp.co.uk> on Saturday November 08, 2014 @08:56AM (#48340065) Homepage

    Where petrol costs ~£4.60 per US gallon =~ $7.30. About 60% of that price is tax, take away that tax you get about $3.

    I do not like expensive petrol, but I do realise that we need to cut the amount of carbon based energy that we use - climate change might not affect me, but it will my kids.

  • by damn_registrars ( 1103043 ) <damn.registrars@gmail.com> on Saturday November 08, 2014 @09:22AM (#48340123) Homepage Journal
    Paying attention to Jeep and Ram sales doesn't really say a whole lot. Jeep has the largest number of smaller - yet non-toy - SUVs of any manufacturer right now; some of the other manufacturers have been reducing their line-ups. Similarly while the Ram trucks haven't changed much in the past decade the other manufacturers are changing their trucks which shifts demand around.

    You need to look at industry-wide sales stats to have a sense of what the sales numbers are doing. You need to also look at it against annual averages, as a sales uptick in the fall is not unusual when businesses are looking to finish their fiscal years.
  • Maybe in California. We're a little less exuberant on the East coast.

  • by Culture20 ( 968837 ) on Saturday November 08, 2014 @09:35AM (#48340171)

    "This is like putting a Big Mac in front of people who need to diet or watch their cholesterol," says Anthony Perl.

    Should Big Macs cost more to dissuade their use? What about the people who couldn't afford better than a Big Mac? Switching away from the analogy: inexpensive energy is the biggest benefit to poorer members of society. It means cheaper food, cheaper heating/cooling, cheaper transportation. When someone says "make energy source X cost more than energy Y because Y needs a chance to succeed", they're not thinking about all the costs associated with the rise in energy costs.

    • Your point is certainly correct. Almost everything you buy, from food to medicine, to clothing is carried in trucks, so high gas taxes increase the cost of all goods. A minor nitpick:

      > What about the people who couldn't afford better than a Big Mac?

      A Big Mac costs $4 and weighs half a pound, so it's $8 per pound. Fruits and vegetables run about $1 per pound. Junk food is expensive, so the oft-expressed claim that Americans eat junk because they can't afford nutritious food is silly. Our neighbors t

    • by haruchai ( 17472 ) on Saturday November 08, 2014 @10:15AM (#48340357)

      We had inexpensive energy for a long time and it didn't fix all of society, so it's only one factor. And if every poor person could drive a car, traffic would be so slow that it would be quicker to walk.
      Raise the cost or taxes on fuel and use it to build much better mass transit and subsidize the price of fruit & veggies, milk & meat produced domestically.
      That will do more for the poor - with universal, single-payer, healthcare than simply having cheap gasoline.

      • Thank you.

      • More than 250,000 UK citizens have been killed by cold temperatures [telegraph.co.uk], despite how inexpensive energy is. To the extent people advocate against inexpensive energy, the death rate will increase, and the victims' [frozen] blood will on he hands of the advocates.

        • Re: (Score:3, Insightful)

          by haruchai ( 17472 )

          So add subsidies for the needy - and use some fucking decent building standards, for fuck's sake.
          I've never lived in the UK but I do have many friends who have or grew up there - far too many homes are drafty and leaky beyond description.
          Building better homes or patching up the crappy ones would be a great infrastructure project with lots of local employment, something Britain needs.
          In civilized countries, you're not allowed to cut off someone's electricity during the winter months.

          I'm not opposed to "inexp

  • by trout007 ( 975317 ) on Saturday November 08, 2014 @09:40AM (#48340189)

    According to most economists people are going to stop driving and wait for gas prices to get even cheaper.

  • What the article fails to address is that the Saudis have flooded the market with cheap oil that they can make money on at 30 dollars a barrel while tar sands require about 93 dollars a barrel and fraccing requires about 83 dollars a barrel to remain viable. These groups have already cut back and started layoffs.

    • If by "flooded" you mean "failed to artificially restrict" then, yes. It's interesting in that the oil producing nations have, at times, been able to collectively meter their output to keep the money flowing in. Of course, at $100 a bbl there's no need to cut back, and several states are strapped for cash so they're less interested in putting the screws to the non-oil producing nations as they are putting cash in their pockets, rockets in their launchers, and food on the table. As a result, the market is fl

    • What the article fails to address is that the Saudis have flooded the market with cheap oil that they can make money on at 30 dollars a barrel while tar sands require about 93 dollars a barrel and fraccing requires about 83 dollars a barrel to remain viable. These groups have already cut back and started layoffs.

      If I remember right, Hybernia, off of the coast of Newfoundland, needs about $75 a barrel to make money.

  • 1) The Jevons paradox [wikipedia.org] comes to mind.

    2) I still believe population is generally the key factor. Although it will never happen, without population control the hole in the bottom of the energy bucket will just keep getting wider and wider.
    • 2) I still believe population is generally the key factor. Although it will never happen, without population control the hole in the bottom of the energy bucket will just keep getting wider and wider.

      Why do you think population control is necessary? It already happens on its own. There's a very strong inverse correlation between a country's economic development and population growth. Most developed countries are at or close to zero population growth [wikipedia.org]. A few like Japan and Germany are even shrinking in p

  • Every time you fill your gas, please write a check for twice as much and make it payable to the U.S. Treasury. Until you are willing to put your money where your mouth is, shut up.

    • To those who want a standing army of over 4 million active service and support staff rather than a domestic defense force, please get out your checkbooks and send your portion of the 1.2 Trillion Dollars we spend on the military every year. I, personally, think we should be able to defend the 4M sq miles of land we have with the same money that Russia spends on its 7M square miles. And that means those few who want all that extra military need to cough up the 90% of that 1.2 Trillion that we're over spendin

    • Every time you fill your gas, please write a check for twice as much and make it payable to the U.S. Treasury.

      Is this just a lame rhetorical device, or are you not aware of the difference that scale makes?

      That is, it's probably worth destroying 99.99% of the salmonella on that chicken, but not 0.01%

    • I will if you will. Deal?
  • Initially I applauded to US mandating manufacturers must meet fleet average mileage or face penalties. My opinion was that yes, it would make cars marginally more expensive and would move us toward energy independence. Well, I was wrong.

    Drilling end up moving us toward energy independence, all gains we had in fuel economy (not an insubstantial amount) are dwarfed by increase in oil and gas production. At the same time, cars did not end up more expensive. Instead manufacturers made a decision to compromise
    • by 0123456 ( 636235 )

      Well, duh. WTF did you think would happen? People don't want to pay more for cars they buy today to save a few bucks in gas at some point in the future; particularly if they're leasing.

      The fuel economy mandate is just another lame attempt by the left to force people to buy crappy little econocars that they don't want to buy. Because the left know what's good for them better than they do.

  • ...whether you notice changes in the price of gasoline without being notified by the media. If you do then you satisfy a fairly broad definition of "middle class".

    If you're too poor to own a car and, hence, don't care about gas prices, then you're not middle class. If you're someone to whom a $1/gal delta in the price of gas is more-or-less meaningless then you're not middle class. If you're someone who lives in a dense, urban environment and doesn't own a car by choice then you're probably also not "m
    • Your definition of "middle class" is probably a bit too broad on the low end. Outside major cities, and even within many of them (such as Philadelphia), many of the poor own cars. And to them, price of gas is very significant.

  • by the eric conspiracy ( 20178 ) on Saturday November 08, 2014 @11:03AM (#48340579)

    Many geologists claim that the amount of oil recoverable from shale deposits is vastly overestimated by shale oil entrepreneurs. Early this year the EIA decreased their estimate of the oil recoverable from the Monterey shale formation by 96 percent. Certainly there is a large discrepancy between reserves claimed in SEC filings vs. that claimed in public statements.

    I wonder if there is a self-interest in operation here?

    If the SEC filings are correct we only have a few years of oil from shale in our future. Production will be well into decline by the end of the decade.

    If you have a long term market outlook it's something to think about....

  • Fuel prices tend to drop during election years, and especially years where the (R) have a shot at majority. The oil industry is more than willing to forego a few months profit to get control over the Congress. Expect the nastiest Presidential election ever in 2016 (and another temporary price dip). You know the Keystone XL was the real winner in this recent round of elections..... I'm off to fill my heating oil tank now.....
  • I just bought a new premium-requiring gas-guzzling machine. And now gas prices fall dramatically. First time I've ever had such good luck.

    Meanwhile, electricity prices go up. Sucks to be a new Tesla owner.

  • Reality check (Score:5, Interesting)

    by ourlovecanlastforeve ( 795111 ) on Saturday November 08, 2014 @12:50PM (#48341065)

    Hi there, reality check here.

    This is how petroleum prices are managed:

    When the oil and gas industry wants fuel prices to be low they optimize the fuel supply chain and keep petroleum flowing so the supply meets demand.

    When they want fuel prices to go up, they burden the supply chain to increase demand. One of their favorite tricks is to pilot their fuel container ships to about 20 miles off the coast of port and park them there, waiting for fuel prices to go up.

    Fuel prices are managed much like department store sales.

    Department stores gradually increase the price of popular items until customers stop buying, then they have a "sale" where they reduce the price of those items to the normal retail price.

    Then they start to gradually drive up the prices again.

    The petroleum industry does something similar; gradually drives prices up until consumers start to look into alternative fuel measures by stifling the supply of petroleum. Then when that point is reached they have a "sale" where they optimize the supply chain.

    Your average consumer sees this as a modern miracle instead of researching to find out why the price went down, and they celebrate by driving, flying and using power sports vehicles more than ever.

    Every time the supply chain is stifled the lowest price for petroleum notches upward a little bit to prevent customers from dumping petroleum but raise the overall price at the same time.

  • by Irate Engineer ( 2814313 ) on Saturday November 08, 2014 @10:01PM (#48343351)
    The thing that drives me nuts over the whole AGW thing is that it is a distraction from the real reason we need to embrace renewables - fossil fuels are non-renewable and will be depleted in hundred years or less. We're passing peak oil now and we're on the downhill slide. Screw the environmental aspects, the socio-economic aspects are what are going to kick our asses if we don't get in gear soon. We have time to shift to a renewable energy infrastructure, particularly for transportation, but cheap gas slows progress in this regard. Gas will be inexpensive until it costs three of your newborn children for a gallon - it will be a quick hockey-stick exponential cost increase. At that point we will have weeks to build a new infrastructure that really requires decades to implement and must start now. AGW might actually be a thing, but unfortunately it is based on predictions of the behavior of a wildly chaotic non-linear system, so no one will really know until it happens. We'll be out of fossil fuels before we know for sure. The economic impact is the argument that both the blue and red sides might agree upon. Or not.

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