Posted on 12/07/2001 9:42:21 AM PST by cogitator
US drivers in SUV gas-guzzling buying spree
NEW YORK - U.S. drivers are buying gasoline at a feverish clip despite the nation's recession, due largely to low pump prices and an autumn buying rush for gas-guzzling SUVs, analysts said this week.
"Americans are driving more in less-efficient vehicles," automobile expert Mike Lucky of John S. Herold Inc. said. "Sales of SUVs and pickup trucks have been amazingly strong considering the recession, and low pump prices are keeping people on the roads."
Gasoline consumption for November averaged about 8.6 million barrels per day, up nearly 3 percent from last year, according to the American Petroleum Institute (API), despite a recession.
The robust gasoline demand comes amid a steep drop in retail pump prices to two-year lows of $1.12 a gallon and amid a dramatic increase in sales of sport utility vehicles and pickup trucks - some of the least fuel-efficient automobiles on the market.
Bargain financing deals by big automakers have helped push sales of SUVs and light pickup trucks 13.7 percent higher than last year for the month of November, according to the U.S. Commerce Department. Meanwhile, half of the 20 best-selling automobiles so far this year have been trucks or SUVs, including the mammoth GMC Sierra and Dodge Ram pickup, according to data reported by automakers.
"The rate of purchase for new fuel inefficient vehicles is far outpacing the rate of retirement for older automobiles," said Lucky. According to the Federal Highway Administration, the number of vehicles on the road grew by 5.2 million between 1999 and 2000.
In October, the U.S. Environmental Protection Agency said that Americans' love affair with gas-guzzling SUVs reduced the average fuel mileage of all 2001 model year vehicles to 20.4 miles per gallon, the lowest in two decades.
The trend could become a curse to the the nation's energy infrastructure, which over the past two years struggled desperately to overcome regional fuel shortages due to refinery and pipeline outages.
"The lowest fuel economy since 1980 can be attributed to the increase in light trucks on America's roads," the EPA said in a statement. "Light trucks are less fuel efficient."
The current Corporate Average Fuel Economy standards, first adopted by Congress in 1975 after the Arab oil embargo, require passenger cars to average 27.5 miles per gallon and light trucks to average 20.7 mpg. At the time, light trucks were allowed to get lower mileage because they were used mostly by farmers and small businesses.
If auto manufacturers increased fuel economy by as little as three miles per gallon, consumers would save as much as $25 billion a year in fuel costs, the EPA said.
That modest increase in fuel efficiency, the agency said, would also reduce 140 million tonnes of carbon dioxide emissions per year and cut the United States' reliance on foreign oil by 1 million barrels of oil each day - a boon as heightened tensions in the Mideast raise fears of a disruption in crude supply.
Senate Democrats introduced a broad energy bill this week that seeks, in part, to boost vehicle fuel efficiency but said that any change could not take effect until the 2004 model year is introduced.
The legislation does not set specific fuel mileage requirements for vehicles. That language will be added to the bill after the Senate Commerce Committee approves a new standard, they said.
What if I don't particularly pay attention to gas costs? How worked up can I really get over $5 or $6.
There was a survey in the Onion a while back on high fuel prices. It went something like: What do you do when you encounter high prices at the gas pump?
a) Run into the street and scream like a lunatic.
b) Sell you vehicle to the first passerby you see for $1.00.
c) Set yourself on fire as a protest to the rape of the environment and the gouging of the consumer.
d) Briefly glance at the prices on the sign, instantly forget them, fill your tank, go on your way as usual.
(I am LOVING the cheap gas here in N.C.)
Is it left wing to reduce our reliance on oil so that we could tell tyrants, er uh, I mean our "friends" in Saudi Arabia, etc to go to hell?
There never has been an oil shortage! The enviral terrorists have worked hand in hand with the Opecker Nations to increase our dependence on Opecker Oil. Donations by the Opecker nations to the American envirals buy senators like ChiFi and Boxer and Da$$hole. Then they keep us from drilling for oil in Alaska and the lower 48. If we find more oil, we are less dependent on the Opeckers!
I will fill my Large OJ Simpson Bronco up with cheap gas this weekend to drive around this weekend and drive to and from steelhead fishing next week!
Too make it even more gloomy and sad for those who want to tell us to drive unsafe yugos. The RV industry is going great guns. They are selling the big RVs at an incredible rate. The interest rate is low and gas prices are lower than in years. Go you big RV owners and want to be owners!
Every rental rv in California for Thanksgiving, Christmas and New Year's have been booked since the first of October! In stead of flying people are going by their own rv or rental rvs!
My son and daughter in law will be trading up from their Explorer to a larger and safer SUV. My daughter in law drives with a two year old and 9 month old. They have to have two special car seats and a double stroller. When the seats are in and the stroller, there is no room for passengers and not too many groceries or packages! She and my son want the biggest and safest suv that they can afford to buy!
Screw all of the whiney enviralists on the left and the right! Get your damn yugo's and rice burners out of the left lane. I want to go fishing in my big Bronco!
That is much more effective.
In the short-term, of course, yes. In the long-term, we will be vulnerable to Middle East politics and terrorism as long as we are heavily dependent on Middle East oil imports.
Have fun flipping over...
Your knowledge of economics is laughable, hence Left wing.
Is it left-wing of me to think that the U.S. is too dependent on oil imports from the Middle East, and that one of the fastest and effective ways to reduce our dependence on these imports would be to reduce our consumption?
If it is, well, then it's left-wing of me.
Hell, if all you care is about size and comfort, why not cart your family around in a camper?
I'm with ya.
Then we are agreed.
As a fly fisher who tries to catch native whatevers, I release most of my fish. My mean old wife figures that when I finally catch and kill a hatchery trout/steelhead or salmon, it cost us about $1,000/pound. However, she keeps buying me more fly fishing gear!
When I got back into fly fishing years ago. She bought me a new rod and reel from my mentor/guru in Oregon. She rolled her eyes at the cost and made some comment. My guru said that fly fishing is expensive but sure beats the costs of some other alternatives! Since then, she buys the gear, moans and then say that I'm not fishing enough!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.