Usatoday: "former Oil Exec: $5-a-gallon Gas On The Way"

[CheeseheadEarl]

Milwaukee to build a trolley that runs less than 3 miles will cost 124 million to start with (it was 60 million to start with). This before the cost over runs start to be paid for by the tax payers . The operating cost to be paid for by tax payers of the rest of time . It will never cover even the smallest percentage of operating cost on its own.
But we must get people out of their cars at any cost.

Sounds like Twin Cities light rail. The biggest problem with Taxpayer Transit, is it doesn't go where people need to go, when they need to go there.

 

[Joshua Caldwell]

Gas is going back up. If not by market forces by taxes. You have such short memories or hide your heads in the sand. Obama said it loud and clear that gas prices would need to go to 7 dollars a gallon to get people out of the cars. Just because they have not done it yet does not mean they gave up on the plan.
Enjoy the lower cost gas while you can , an new assault on your personal transportations rights is coming. You will get on the people bus and out of your cars.

I hope this happens, the transportation budget is empty and they keep having to use various short term tricks to keep it going, indexing the tax as a percentage instead of flat tiny dollar amount that doesn't reflect inflation is a needed solution.

P.S. I thought I would also throw in that North Carolina has the highest gas taxes of any place I have ever lived, and has the best quality roads of any place I have ever lived, and at just $0.375 per gallon, that's a price I willingly pay and can easily afford.

 

[Jim H]

Not gonna happen, there are 254 million registered cars/trucks etc, Americans love their cars (and guns), they aren't coming for either..

Ever heard of Sustainable Development and Smart Growth? All across the nation cities are increasing bicycle lanes and reducing vehicle traffic lanes. Planning and Zoning commissions are reducing the size of building lots and restricting parking spaces in commercial developments while increasing funding for public transportation. Here in Las Cruces City Councilors have lobbied for smaller more compact downtown housing without garages because people wont need cars because they "can take public transportation"

 

[satx]

Elio's high MPG becomes more important only if gas gets really expensive (won't happen for years, Saudis say they will keep pumping until they kill the high-cost frackers, and high cost tar sands), and only for drivers who buy Elio to drive it high miles (15K+ /year ?).

The dominant, overwhelming attraction is Elio's low sales price, which is also it's dominant negative (for the sine qua non investors, who are still absent) because of the low margin in that low sale price, at the factory door.

 

[bowers baldwin]

Ever heard of Sustainable Development and Smart Growth? All across the nation cities are increasing bicycle lanes and reducing vehicle traffic lanes. Planning and Zoning commissions are reducing the size of building lots and restricting parking spaces in commercial developments while increasing funding for public transportation. Here in Las Cruces City Councilors have lobbied for smaller more compact downtown housing without garages because people wont need cars because they "can take public transportation"

Nope, never heard of it, sure we have bike lanes, but I also believe there are more cars on the road than ever. Almost 1 out of every 12 jobs relate to the auto industry (if you include parts stores, car washes etc) so I really don't really think they are coming for our cars. I own some classic cars and I have been hearing for the last 25 years (in magazines and car clubs) how they are "coming" to crush our classics due to EPA or road safety issues etc.
I just don't think that's realistic at this time, 100 years in the future? who knows, but for right now I just don't see it.

 

[Chaz]

I hope this happens, the transportation budget is empty and they keep having to use various short term tricks to keep it going, indexing the tax as a percentage instead of flat tiny dollar amount that doesn't reflect inflation is a needed solution.

P.S. I thought I would also throw in that North Carolina has the highest gas taxes of any place I have ever lived, and has the best quality roads of any place I have ever lived, and at just $0.375 per gallon, that's a price I willingly pay and can easily afford.

If they only used the gas tax to maintain the roads there is more then enough money. The problem is tht they use the money for more and more crap and then complain about not having enough. It is time to pass laws stating the gas tax can only be used to maintain the roads.

 

[RUCRAYZE]

I have a confession to make, I should have gone with my first choice, but didn't-- gas prices are lower because of my purchase of a Honda insight I take full responsibility, my apologies. It's the story of my life!! Hope the Elio breaks the trend!!

 

[Edward]

Ever heard of Sustainable Development and Smart Growth? All across the nation cities are increasing bicycle lanes and reducing vehicle traffic lanes. Planning and Zoning commissions are reducing the size of building lots and restricting parking spaces in commercial developments while increasing funding for public transportation. Here in Las Cruces City Councilors have lobbied for smaller more compact downtown housing without garages because people wont need cars because they "can take public transportation"

I see bike lanes increasing, but car lanes aren't going anywhere around here, even in "bike friendly" Fort Collins, Denver, and Boulder. REducing vehicle traffic lanes doesn't actually reduce vehicle traffic, it just congests it more, which leads to angry voters! Back in NJ, the Trenton has been pushing for years to turn 29 into a a low-speed boulevard with shopping and parks, but as the primary arterial for the western side of the city, that's never going to happen.

 

[Ty]

I saw a brand new crew cab four wheel drive Ford one ton pull into the parking lot at work today, and one guy get out. I work on a nuclear reservation that is 40 miles from the nearest bedroom community. The truck was black and spotless, will probably never go off road. He NEEDS the four wheel drive in case it snows. I live in a desert, we get 7 inches of moisture annually. Every mile he puts on that truck it depreciates, if you need one fine but it is not a commuter car, leave it home, preferably under cover and buy a Geo metro to pack you and your briefcase to work.

Unfortunately, I'm in the same boat as that guy. I live in the desert for this assignment but I move about every 2-3 years and most of my work is in North Dakota, Montana, and Wyoming. I have a large trailer to haul my household goods when we move. Unfortunately, I'm that guy commuting more than 20 miles a day. In my truck. Alone. Getting 15.4 MPG. I'll gladly park it when I can.

 

[Lil4X]

Houston is by far the largest city in the US without zoning. That means there is no central business district, no real "bedroom communities" therefore EVERYONE commutes miles to work. Bus and light rail are political boondoggles that don't have any real application except to line the pockets of political insiders. Houston is also dead flat with a water table only eight to ten feed below ground level. For that reason there are no basements here. If you dig too far below grade, you install pumps to keep your cellar bailed out . . . so subways are out of the question. Ground level transit really messes with private surface transport, and elevated railways? Well, we had ONE about fifty years ago that ran about three blocks. No, it didn't work either.

So, we're stuck in this sprawling city of 600 square miles with tremendous need for private commuter transit. We're the largest city in the South, but we spend hours of every day sitting in traffic converting fossil fuels into ozone. Overlay this with Houston's being the hub of the international oil and petrochemical industry. We're the canary in the coal mine when it comes to the boom-bust cycle of oil prices. In the past two weeks three major oil service companies have laid off 9,000 workers with more to follow. That's the cost of cheap oil - there's no way to support exploration and production on sub-$60 oil. (Current price as of this writing for WTI is $46.16) All of this cheap gas is paving the way to a serious rebound as supplies dry up and motor gasoline becomes scarce.

In the offshore market, the big, deepwater rigs have slipped below 80% "utilization rate" that marks the beginning of rigs being stacked (mothballed) when they cease to be profitable. You'll never see much over 90% utilization because there are still a good number of floating junkpiles that are maintained in the inventory for tax purposes but couldn't drill a posthole. A tumble below 80% represents a significant retreat in drilling offshore. What may be more telling is that day-rates for the super rigs offshore has fallen below a half-million dollars per day - and that's about break-even for operation, maintenance, and debt service on one of these mammoth machines. What does all this market activity mean?

Market pundits - at least those looking several months into the future - are predicting an upswing in crude prices by the end of the summer. We've probably reached the bottom of the market for motor gasoline, and we can expect a slow climb out of the cellar over the next few months as we approach the summer driving season and production of more costly oxygenated fuels for the warm season.

Some "Chicken Littles" are talking about $5 gas by next Christmas, but realistically - barring any major war - $3.50/gal gas is well within range by October. The winter price decline should take over by then and hold prices at that level or below for the next 15 months or so. Long term? Well, inflation will take a large toll at that point, so another 10% rise isn't out of the question before we get to the "summer" pricing of '16.

It's always a shock to discover that whatever benefits the economy in terms of low energy prices, ultimately hurts the economy as energy resources dry up due to the market responding to overproduction and the collapse of exploration for new resources.

So enjoy the sub-$2 gas while we can . . . it's going to be a long and rough road - particularly if crude prices remain at these unusual lows for more than another few months and the energy sector layoffs spread. Yet another good reason for the Elio's appearance in the marketplace - just when it's needed.