In the end it’s all physics. We can either cut back on how much energy we produce (like that’s going to happen) or increase the amount of fuel to supply energy use.

Every study I have been reading this summer on consumer habits suggests that we are not in a social or psychological position that is even close to being ready to make actual cut-backs in our spending to make up for current fuel costs. Just look at figures for dining out and box-office figures at the theater. One less movie a month and one less dining experience would probably make up the pump costs for a lot of families each month.

The US was just, and still is, really really fortunate to have such cheap energy costs. Petrol anywhere else, save maybe Saudi Arabia or Venezuela, is more expensive than here. The fact is that the US continues to be middle of the pack. Europeans have better use of public transportation and smaller cars in general. Time to make palpable consumption habits and for a lot of people to stop whining if you ask me.

For the Prius (should we include the subsidy in the price? We should, actually), without subsidy you are paying at least $22,000 up front. I will be extremely charitable and not include the government subsidies, and ignore the battery replacement issues, etc. The Prius gets (again, being charitable) 50 mpg.

So we have an up front $7,000 cost difference, and a long term 15 mpg mileage difference. Assuming they both hit the junkyard at 120,000 miles:

$15,000 + $4*120,000/35 = $28,714
$22,000 + $4*120,000/50 = $31,600

Working the math the other way, gas needs to increase to $6.81 per gallon for the Prius to make “break even” with the Corolla.

(p.s. you should check out the research on petroleum geology and where oil really comes from. Some *very* interesting findings on how oil is created. Yes, if it came from decaying organic matter we would have run out years ago. But since it doesn’t . . . )

the other steve

Huh.

Gas would have to go above $8/gallon before I would seriously change my driving behaviors or patterns (or even consider public gtransportation).

On the other hand, $150-$200 per week for gas is about what I spend on entertainment; and considerably less than what I piss away on interest charges and other stupid stuff.

So frankly, when the cost of being able to travel great distances in relative comfort at high speeds approaches the cost of, say, liquor and eating at restaurants . . .

It’s all relative. Many people at the lower end of the economic ladder spend much more on cigarettes, booze, and lottery tickets than they do on gasoline. People at the higher end spend much more on dining out and fine wines than they do on gasoline.

I mean, c’mon- until gas gets up to $8/gal, LIFE GOES ON!

the other steve

That’s interesting. Assuming we actually do save 18 cents/gallon, that would mean your family of 4 would save $129.60. That is roughly the $30 mark that Obama was talking about.

On the other hand, $30 each, for a family of 4, adds up to “real money.”

Am I safe in assuming that the mileage demand is “price inelastic” (that’s work related, mostly?)

Yeah, 720 gallons of gas June-August.

Yikes.

1 Jeep Wrangler (13 mpg)
1 Mazda Tribute (24 mpg)
1 Toyota Corolla (35 mpg)
1 Suzuki GS 700 (55 mpg)

My *current* fuel bill runs in the neighborhood of 32-42 gallons per week.

In the summer I conduct research with commercial motor carriers; each visit to interview truck drivers is a 108 mile round trip. At 5 visits per week, plus up my fule consumption numbers by another 15 gallons.

Net summer fule consumption: 50 gallons per week.

Add two car trips @ 1,800 miles each . . .

the 0ther steve