Wednesday, November 26, 2008
King of Prussia BID
The cost of filling up at the pump appears to be declining. In the past year the peak price of a gallon of gasoline essentially was double its current price. This incredible swing exemplifies how volatile the fossil fuels market can be. Currently, the price paid for a gallon of gas is lower than recent averages, but is still high when compared against historical averages. The reason for the steadily increasing cost in fuel is a lesson in economics. The demand for fuel is continually rising, while the supply of fuel is steadily diminishing. The reason the supply is diminishing: fossil fuels are not a renewable source of energy.
If the sudden spike of fuel taught US drivers anything, it was that efficiency is the key to reducing costs, and ultimately reducing demand. Recently, there has been concern over the American automobile industry’s ability to compete with foreign manufacturers’ higher fuel efficient vehicles. A lot of talk surrounds the CAFÉ Standards. CAFÉ stands for Corporate Average Fuel Efficiency. Simply put the average fuel efficiency an automobile manufacturer is able to achieve with from all product lines. It is no mystery that foreign manufacturers have surpassed the American auto industry with fuel efficiency. Competition over higher fuel efficiency is driving the auto industry, but there is a greater competition in the industry, and that is to manufacture vehicles that do not operate on petroleum based fuels.
When gasoline prices were peaking during the summer, the debate over alternative fuels also peaked. Using an alternative to gasoline was on the mind of every American. Suddenly there was a strong interest in finding another method to power our vehicles. As quickly as the price of fuel has dropped, so has the attention on alternative fuels. The issue is no longer making headlines, and certainly has taken a backseat in the minds of most Americans. President Elect Barack Obama has referred to this phenomenon as “shock and trance.” When the price of fuel spiked, Americans were shocked it could go so high, and stunned by the lack of options. As the price has dropped, we have entered a trance-like state of complacency, forgetting the unbelievable peak.
It is the “shock and trance” that will diminish our enthusiasm for alternative fuels. The time to innovate, and retool has passed. The pursuit of alternative methods to power our automobiles must remain in the forefront of the national debate. Our automobiles are inextricably linked to our economic growth. If the American auto industry is unable to compete with foreign manufacturers developing vehicles powered by alternative fuels, the detrimental effects will be far reaching throughout the American economy. The need for alternative fuel vehicles must be matched with the infrastructure to supply the required fuel to the driver. Neglecting to improve the fuel delivery infrastructure negates all innovations the auto industry produces.
We are years away from seeing a viable alternative omnipresent in our country, both in vehicles and fuel delivery infrastructure. The lack of alternatives is no excuse for maintaining the same driving habits. American drivers must face the fact that a reduction in the consumption of fossil fuels is a necessity to bridge the gap towards alternatives. Fortunately there are many ways to adjust without purchasing a more fuel efficient vehicle; the easiest step to take is to continue to reduce the amount of miles driven. In the past two years Americans have, as a whole, reduced the amount of miles driven. Something that has never occurred in the over one hundred years we have been driving. Many American automobiles are “flex fuel” vehicles. A “flex fuel” vehicle is capable of using ethanol for fuel. The prevalence of ethanol fueling locations is increasing as more and more cars are capable of using the fuel. A low cost method to reducing demand for fuel is to start walking more, or riding a bike. A large percentage of automobile trips are less than 5 miles, these trips can be easily replaced by walking and biking. Lastly, reevaluate commuting options, and begin taking transit, or carpooling to reduce demand for fuel. All of these methods will reduce the demand for fossil fuels, and actually save you money.
The price of gasoline will climb and undoubtedly surpass historic peaks. Eliminating the automobile is not an option, changing its power source is. Change will take time. In the interim, Americans cannot afford to caught in the “shock and trance” cycle and neglect this very important issue.
If the sudden spike of fuel taught US drivers anything, it was that efficiency is the key to reducing costs, and ultimately reducing demand. Recently, there has been concern over the American automobile industry’s ability to compete with foreign manufacturers’ higher fuel efficient vehicles. A lot of talk surrounds the CAFÉ Standards. CAFÉ stands for Corporate Average Fuel Efficiency. Simply put the average fuel efficiency an automobile manufacturer is able to achieve with from all product lines. It is no mystery that foreign manufacturers have surpassed the American auto industry with fuel efficiency. Competition over higher fuel efficiency is driving the auto industry, but there is a greater competition in the industry, and that is to manufacture vehicles that do not operate on petroleum based fuels.
When gasoline prices were peaking during the summer, the debate over alternative fuels also peaked. Using an alternative to gasoline was on the mind of every American. Suddenly there was a strong interest in finding another method to power our vehicles. As quickly as the price of fuel has dropped, so has the attention on alternative fuels. The issue is no longer making headlines, and certainly has taken a backseat in the minds of most Americans. President Elect Barack Obama has referred to this phenomenon as “shock and trance.” When the price of fuel spiked, Americans were shocked it could go so high, and stunned by the lack of options. As the price has dropped, we have entered a trance-like state of complacency, forgetting the unbelievable peak.
It is the “shock and trance” that will diminish our enthusiasm for alternative fuels. The time to innovate, and retool has passed. The pursuit of alternative methods to power our automobiles must remain in the forefront of the national debate. Our automobiles are inextricably linked to our economic growth. If the American auto industry is unable to compete with foreign manufacturers developing vehicles powered by alternative fuels, the detrimental effects will be far reaching throughout the American economy. The need for alternative fuel vehicles must be matched with the infrastructure to supply the required fuel to the driver. Neglecting to improve the fuel delivery infrastructure negates all innovations the auto industry produces.
We are years away from seeing a viable alternative omnipresent in our country, both in vehicles and fuel delivery infrastructure. The lack of alternatives is no excuse for maintaining the same driving habits. American drivers must face the fact that a reduction in the consumption of fossil fuels is a necessity to bridge the gap towards alternatives. Fortunately there are many ways to adjust without purchasing a more fuel efficient vehicle; the easiest step to take is to continue to reduce the amount of miles driven. In the past two years Americans have, as a whole, reduced the amount of miles driven. Something that has never occurred in the over one hundred years we have been driving. Many American automobiles are “flex fuel” vehicles. A “flex fuel” vehicle is capable of using ethanol for fuel. The prevalence of ethanol fueling locations is increasing as more and more cars are capable of using the fuel. A low cost method to reducing demand for fuel is to start walking more, or riding a bike. A large percentage of automobile trips are less than 5 miles, these trips can be easily replaced by walking and biking. Lastly, reevaluate commuting options, and begin taking transit, or carpooling to reduce demand for fuel. All of these methods will reduce the demand for fossil fuels, and actually save you money.
The price of gasoline will climb and undoubtedly surpass historic peaks. Eliminating the automobile is not an option, changing its power source is. Change will take time. In the interim, Americans cannot afford to caught in the “shock and trance” cycle and neglect this very important issue.
