Are We Going Back to 55mph?
by Steve
Sunday, March 23, 2008
I just finished reading this piece about truckers voluntarily slowing their rigs down another 5-10mph on the freeways to conserve fuel...
"I used to be a speed demon, but no more," said Dawson, based at Tacoma, Wash. "Most drivers have cut their speed considerably."
Dawson said she's cut her speed by five to 10 miles per hour to save money for her company. Many independent owner-operators have slowed even more, she said.
Here's the full article...
http://news.yahoo.com/..../ap_on_re_us/slower_truckersNews about rising oil prices have been back, and it seems to always be this way around Spring time. Analysts always forecast that they'll go even higher as Summer comes around, but it often never goes as high they predict. But I think this year, we may be reaching a critical mass.
If the average gasoline price across the country rises over $4.00 a gallon, will the USA implement another national speed limit as they did in the 1970s? Will speed limits come back to 55mph?
It was in the 1970s that the USA reached "peak oil" production. Have the Saudis reached peak oil? Peak oil is a state where oil drilling facilities can no longer produce more barrels of oil to satisfy a rising demand.
The USA is no longer in control of this demand, it's now coming from China and Russia as those two countries continue to industrialize. If we Americans reduced its demand for gasoline, all it would do is bring gas prices down to the point where we'd abandon our alternative transportation. But with demand rising from China and Russia, reducing our gas consumption will no longer have much effect on gas prices. We'll have to find alternative fuel for economic reasons as opposed to environmental.
The thing about slow moving trucks is that no one wants to ride or drive behind one. If trucks are slowing down, it'll mean more vehicles attempting to pass them. I wonder what that will do for motorcycling here in the states.
Labels: Gasoline Prices
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High Gas Prices - An Opinion
by Steve
Friday, May 04, 2007
The Wall Street Journal Online has a great article on the subject of higher gas prices, and supports extactly what I have felt is the crux of the matter: high demand....
http://biz.yahoo.com/..../summergas.html
If you don't want to read the whole article, here are some key quotes...
- It all depends on refineries, weather and drivers' tolerance for expensive fuel.
- Still, pain at the pump hasn't kept Americans from driving, which is part of the reason gasoline prices keep rising. Many workers need to drive to earn a living, and cutting back isn't an option.
- The latest Energy Information Agency data show gasoline demand in the past few weeks rose 2.3% from the same period last year, outstripping growth in refinery capacity.
- The U.S. has filled that gap by importing fuel. The problem now is that imports aren't as readily available as in the past.
I've read from other bloggers, including biker bloggers, that the problem is just greed. Plain old greed. They read reports that oil companies are earning record profits, and therefore, have no excuse not to discount prices or increase supplies. I dispute that.
My contention is that gasoline prices are affected by the old principles of "Supply vs Demand". That principle says that when demand goes up, prices go up. When demand goes down, prices go down.
If you take a look around, you'll see that people are still buying gasoline despite how high the prices are. Even though they are complaining about it, they are still buying it. As long as they are willing to buy it, it's not "too high" at all.
You can argue that people have no choice but to buy gasoline, but that's not true. People can still carpool, they can still take the bus, they can still ride their bicycle, or their scooters. They can opt to work 4 days a week, for 10 hours a day, and they can even telecommute out of their homes.
But the fact is that people don't want to make these concessions. To them, driving solo in the comfort of a cage is worth a lot to them, enough so that they're willing to pay $4.00 a gallon to do it. That means, gas prices are not "too high".
But still, there are people who argue that oil companies should voluntarily increase their supplies, just to give hard working Americans a break. Why? Why should they? If people are capable of affording the higher prices, and unwilling to modify their driving habits, how is it that gasoline is too expensive?
Gas prices will never reach a critical point until people start buying less of it. That's when we'll discover the threshold of what's affordable and what's not. Otherwise, nothing is going to change as long as people are unwilling to modify their driving habits.
Labels: Gasoline Prices
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New Survey on Gas Prices and Increased Motorcycle Riding
by Steve
Wednesday, April 19, 2006
Last week, Nationwide Insurance Company published the results of a survey regarding higher gas prices and increased motorcycle riding.
The survey shows that 35 percent of motorcycle owners plan to ride their bikes more over the next year as a result of higher gas prices, and that they'll be turning their riding hobby into an everyday form of transportation.
It also shows that motorcycle owners spent 26 percent of their total riding time last year commuting to work.
The survey, conducted by Brandware of 2,544 motorcycle, power boat, bass boat and ATV owners, shows that both male and female motorcyclists expect to ride their bikes for approximately 22 more hours than they did in the past year. Male motorcyclists expect to ride 172 hours over the next year, while female riders expect to ride 146 hours.
It goes on to show that motorcyclists are so passionate about their fuel-efficient bikes, they will pay $3 to $4 more per gallon before they stop riding.
Nationwide Insurance commissioned the survey as part of its effort to market its motorcycle insurance policies.
Labels: Gasoline Prices, Motorcycle Statistics
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What Gas Price will Cause a Motorcycle Boom?
by Steve
Monday, April 17, 2006
The price of crude oil reached an all time high today, at $70.40 per barrel.
The situation with Iran and their development of nuclear capabilities, and what is seen by many as an eventual military showdown with the USA, is sending prices sky high.
And it's not even summer yet.
The past month, I've been taking my motorcycles to run errands, my Road Star when I don't have to carry anything, or my Ultra Classic when I do.
I'm expecting a trend towards buying mid-sized motorcycles, 600cc to 1000cc, in lieu of buying compact cars. Here in Southern California, compact cars are purchased by middle-income families solely as commuter vehicles. Such families still buy SUVs and pick up trucks for their needs, but often drive the smallest cars for commuting to work.
A couple of neighbors of mine have been riding their Harleys to work for the past year now. Some other guys in my riding club have been doing so for quite some time. In fact most motorcycle owners I know are doing this.
What's the price that pushes people over the edge towards buying a commuter motorcycle? Will it be $4.00 a gallon? $5.00 a gallon?
Perhaps there's a price-point when commuting becomes so expensive that folks can't afford to live so far from work, that it will cause a paradigm shift in deciding where we live. If we can't afford to live so far from our place of employment, then we'll either move closer, or we'll telecommute from our homes. We might see a situation where families sell their homes in the sprawling suburbs, because they can't afford to live so far from the city.
But that's an extreme scenario. I'm betting people will exchange their mid-sized sedans for a motorcycle before they sell their homes. I just don't know what gas price will cause this trend.
Labels: Gasoline Prices
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Government Should Encourage Motorcycle Use
by Steve
Tuesday, November 22, 2005
Having just read an interesting article about biofuels hastening the destruction of natural habitat, I couldn't help thinking that our demand for fuel is mainly due to our reliance on cars.
Biofuels is essentially alcohol-based fuels like ethanol and methanol. In the USA, we're making it from corn, while in other countries they're making it from soybeans and palm. In Brazil, it's law that all cars registered there be capable of running on ethanol. This is why farmers are clearing out the rainforests to grow biofuel crops.
Here in the United States, our society tends to shun motorcycles. People look at them as either dangerous, or they look at bikers as dangerous. The reason why our society does this is because they can afford to do so. If our income levels were such that only a minority could afford cars, then Americans would have a totally different opinion about motorcycles.
But if 50% of all commuters rode motorcycles, then it would cause our demand for oil to come way down. This decrease in demand would bring down prices, and this might be enough to change the dynamics of Saudi-funded terrorism in the Middle East.
Part of the problem of getting more Americans to ride motorcycles is that our media paints a scary picture of them. Everyday, when I scan the news channels for material to blog about, I find countless new headlines about motorcyclists getting killed. Why doesn't the media do this for car accidents too?
Our government also doesn't help either. Some states require people to take the MSF course. Most states don't allow lane-splitting. Here in California, the last hold out for lane-splitting, many of my biker friends take their motorcycles to work specifically because they can split lanes. Take that away from them, and you take away a reason to save energy.
The reason why the media and the government acts against motorcycles, is because here in the USA motorcycles are a luxury item. They're simply recreation, and recreation indicates wealth. Liberals hate it when people become wealthy, because it demonstrates that capitalism and free enterprise works. This is why liberal governments in the US pass laws that burden motorcyclists.
It's too bad, because motorcycles can lower fuel prices, reduce freeway congestion, and give mobility to low-income people. You'd think liberals would champion these outcomes, yet they'd rather fight wealth instead, and contribute to the clearing of rain forests and put money into the pockets of Saudis.
Labels: Biofuels, Gasoline Prices
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