Tag Archives: hybrid automobiles

business news, national news

What about consumers of oil?

The media and others keep reporting about the impact that the collapsing price of oil is having on the oil industry and those who work in it.

I feel for them, with their jobs on the line. It’s getting less cost-effective to explore for oil and produce it when the price falls from $100-plus per barrel to less than $50.

http://www.msn.com/en-us/money/markets/oil-rally-seen-reversing-as-rising-us-supply-deepens-glut/ar-BBhHhF7

But what about the consumer? What about the family that is now spending considerably less for gasoline then it was a year or two ago? How about those folks who suddenly find themselves with more disposable income, money to spend on other essentials — such as, oh, food and clothing?

The recent uptick in fuel prices is now expected to revert to recent trends as the nation’s oil glut continues to grow. It’s been an amazing spectacle to watch as street-corner gasoline dealers drop prices as many as three times daily.

I’ve talked here about the “new normal” in gas pricing being elevated to heights none of us imagined when we were much younger and were spending about four bits for a gallon of gas. I remember my parents pulling up to the gas pump and telling the attendant, “I’ll take a dollar’s worth of regular.” We won’t return to those days, but we’re a lot closer to them today than we were in 2013.

It’s that result that prevents me from crying too heavily over the fortunes of those who work on the oil field pipelines or at the refineries that turn crude oil into gasoline or diesel.

My wife and I will keep driving our hybrid motor vehicle — just like millions of other Americans — and will keep working to build up that supply of fossil fuel that contributes to the plummeting price of gasoline.

 

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Shall I take credit for gas price decline?

I am trying to decide whether to take credit for the decline in gasoline prices all across Amarillo.

My wife and I recently purchased a hybrid automobile, a Toyota Prius. It runs partially on gasoline and partially on electricity. It’s a nice little rig, a 2010 model with about 71,000 miles on it. A young sales rep at the auto dealership where I work told me the engine “won’t even get broken in until it hits 100,000 miles.” Good to know.

I filled up today. We went nearly two weeks since topping off the tank in the little bugger. The car consumed 3.6 gallons of gas during that time.

I’m not an economist, but I do understand a couple of basic principles. One of them is that when demand goes down, supply goes up. Another is that when suppliers have too much of something to sell, they tend to mark down the price to reduce their inventory.

President Obama touched on all of that Thursday when he toured a steel plant near Cleveland, Ohio. He talked about the decline in fossil fuel consumption and the decline in oil being imported into the United States, coupled with the increase in renewable energy and increases in fuel-efficient automobile production.

Do you see a pattern there? I do.

My wife and I believe we’re doing our part with the purchase of our hybrid car.

Look at the gasoline pump prices in Amarillo. I have read data that suggest the price could fall even farther, again as supplies increase because of reduced demand. My hope is that people don’t start driving a whole lot more as gasoline becomes more affordable.

OK. That settles it. I have decided to take some credit for the price decline.