$4 gas: Get used to it

ALS · #1 10-05-2012, 10:38 AM

The upshot? Americans are increasingly grappling with unchanged paychecks in the face of higher energy prices. Their money is buying them less, the EIA says,

http://www.cleanmpg.com/photos/data/501/Filling_up_the_SUV.jpg

Leah Mcgrath Goodman - FORTUNE - October 5, 2012

President Obama may have a lot more to worry about than bombing the debate this week. Traders are starting to get particularly bullish over gasoline prices – and that is bad news for the average driver, who may also be looking to vent his spleen at the voting booth.

Reports of gas shortages along the high-demand west and east coasts may be fleeting – although deeply concerning – but they highlight a problem that's expected to persist in the U.S.: our refineries are getting old. Given that a new refinery has not been built since 1976, commodities desks on Wall Street are bracing for more refinery outages and fires just as the nation needs to gear up for the busy winter heating season.... [Read More]

PaleMelanesian · #2 10-05-2012, 10:46 AM

I hate it when my spleen needs to vent. It's so messy.

Earthling · #3 10-05-2012, 10:57 AM

I walked to work this morning and my Prius insulates me from gasoline price shocks.

Harry

PaleMelanesian · #4 10-05-2012, 11:13 AM

I'm set with the Civic.

The Ody scares me. Even the best replacement is only slightly better. The new Ody gets 19/28 instead of 16/23, but you have to pay $45,000 to get that version. Gas would have to be $40/gal to get that payback under 10 years.

Explorer 2.0 ecoboost is slightly better. Same mpg, but cheaper at "only" $30,000. A 10 year payback requires gas to be $22/gal. It's also a lot smaller in the back seat and cargo area.

Mazda5 is out. Too small ( 5.58 cf cargo space?

). Also, 2+2+2 seating means you have to remove one car seat, fold the seat down, install child in 3rd row, fold the seat back up, install car seat, then install child. Every single trip.

Prius V, IF the back seat space can work, would pay back in 10 years at $5.5 gas. Reasonable, but only if the space works. Internet searching suggests it can fit 3 car seats, but only with a certain few expensive seats, which I don't currently have.

08EscapeHybrid · #5 10-05-2012, 11:28 AM

The oil companies don't like Obama, and that's no secret. I would not put it past them to purposely schedule the refinery shutdowns for maintenance right before the elections. Create shortages and high prices in key regions...

ALS · #6 10-05-2012, 11:39 AM

Operative note in the story, we haven't built a new refinery since 1976. The youngest refinery in the continental U.S. is 36 years old. When your dealing with plants that old you are going to have more than normal maintenance needed to continue production at a decent level of safety.

08EscapeHybrid · #7 10-05-2012, 11:46 AM

Agreed. Our energy infrastructure is poor at best. Our power plants and power grid are ageing, we have many roads and bridges in a state of disrepair, water mains and sewers are really old in many areas as well, especially in large cities.

waltermlee · #8 10-05-2012, 11:53 AM

I am not surprised. Gas prices have been trending up since 1960s.

Because an oil refinery problem I hear that regular gas in CA is now about $5/gallon and that premium/super gas is close to $6/gallon.

Higher gas prices will also make it easier to sell or trade in my hybrid when that time comes.

The hypermiling skills I've picked up here on cleanmpg.com has really help reduce my gasoline bill too.

I suppose I'm more ready than most if $5/gallon gas becomes a reality where I live.

I don't blame Obama for high gas or oil prices and oil/gas prices are not going to affect my voting either. It would take a coordinated global effort by all the developed economies/nations to alter the oil future contracts market to mitigate/regulate *speculative/bubble asset* market actions/trading.

I wonder if the higher gas prices will get more people out of their FSPs and onto mass transit?

frv · #9 10-05-2012, 12:13 PM

$4 a gallon - I wish

Our gas prices in the UK make the numbers work for a newer car slightly easier but I'm still not changing mine - it's only 6 1/2 years old.
My next car doesn't exist yet....

I really don't get why some people where I work buy a new car and then after 3 years change it for another new car. That must be the worst possible thing to do from a financial point of view. Oh well, each to their own

Nevyn · #10 10-05-2012, 12:39 PM

Quote:

Originally Posted by PaleMelanesian

I'm set with the Civic.

The Ody scares me. Even the best replacement is only slightly better. The new Ody gets 19/28 instead of 16/23, but you have to pay $45,000 to get that version. Gas would have to be $40/gal to get that payback under 10 years.

Explorer 2.0 ecoboost is slightly better. Same mpg, but cheaper at "only" $30,000. A 10 year payback requires gas to be $22/gal. It's also a lot smaller in the back seat and cargo area.

Mazda5 is out. Too small ( 5.58 cf cargo space?

). Also, 2+2+2 seating means you have to remove one car seat, fold the seat down, install child in 3rd row, fold the seat back up, install car seat, then install child. Every single trip.

Prius V, IF the back seat space can work, would pay back in 10 years at $5.5 gas. Reasonable, but only if the space works. Internet searching suggests it can fit 3 car seats, but only with a certain few expensive seats, which I don't currently have.

QFT. Why is it that the vehicles that NEED hybridization the most, are the least likely to get it?

Make a FWD version of GM's Two-Mode with something like a 2.5L V6, drop it in a Dodge Caravan with "Stow 'n' Go" seating, and use the stow space for battery. Seats don't fold? So what, you've now got a 35-40 MPG hybrid minivan that seats 7 or 8 (bring back the center bench!) and basically hasn't lost any cargo space!

Oh yeah, and it needs to cost around $26k.