Gas Prices

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<p>In the last 3 months, have you people seen less traffic in the major OC freeways in non-peak hours ?





Lately my driving has been faster and smoother, I also feel more room between the car in front of me and in the back.





To me this is the reflection of the economy and obviously gas prices but in the OC this means less residential construction or remodeling, less contractors driving up and down installing pergraniteel everywhere.


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<p>The problem at the present is that the consumer demand is still there for light crudes, so the oil companies have no incentive to look for an alternative. Currently, they have no conflict between maximizing revenue and keeping prices low because the demand for gasoline is not wavering. I think the consumers still feel there are no alternatives, and that in order for them to go to work, they have to drive. In order to affect change, one of a few things need to occur: 1) consumers reduce purchase of gas significantly enough to affect the bottom line of gas companies (reduce demand), 2) someone begins to adopt alternative fuel usage (threat of substitute), or 3) the government passes some type of a law mandating use of alternative fuels (regulation). Otherwise oil companies have no incentive to make the change, nor even to be sensitive to it.</p>

<p>Having said that, I think option 2 is being worked on right now. Hybrids aren't alternative fuel, but it's at least an alternative use of the fuel. The more car companies jump on this bandwagon - and Honda has begun production of other fuel sourced cars in the U.S. - the quicker the adoption will be. I'm all for the 40mpg Camrys and Altimas, which probably means 40mpg Lexus and Infinitis are just around the corner. I also think a foreign gas company that specializes in LPG or other already existing fuel types could make a play in the U.S., and convince the car makers to enter the national market with these cars. They're already in production elsewhere in the world, so it should not be difficult if they can get past 2 things: they're a complementary product so they need the cars that use the fuel, and the government lobbyists.</p>
 
<p>I remember discussing the potential of corn-based Ethanol as an alternative fuel back in 2002. Some people brought up the impact on corn exports and feed prices and were brushed off by those who were hailing it as a clean renewable energy source that would finally break our dependence on oil. Those same people bashed Bush for failing to push through legislation to hurry up the process. Well, 6 years later and what do we have?</p>

<p>We know we can't grow enough corn to replace crude oil. Even trying would cripple the meat industries, remove a major source of food from the world's food supply, and potentially destroy the ecosystems around the farm land due to over fertilization.</p>

<p>We know that ethanol is less efficient per gallon than gasoline. 34% fewer miles per gallon, at a minimum, but even using E85 only results in a savings of 15% per gallon at pump. So it costs more to get less.</p>

<p>Corn prices are now a very profitable crop. We are turning ADM into the next Exxon, with government subisdies for both growing corn and refining ethanol.</p>

<p>Please don't think I am against getting off oil. If an option was provided that wasn't worse than what we currently have, I'd happily pony up the price for a retrofitted/new engine to replace the ones in our cars now. But let's not hop on the next bandwagon without looking at what it will take to actually replace gasoline.</p>
 
I agree with Nude, people understimate the unintended consequences of change. Because of changes to produce ethanol from corn, there is reduced farm land for things such as wheat, which is causing the price of wheat to skyrocket (flour, cereals, etc). At the end of the day, the costs just shift from the left to the right. Whatever replacement item we turn to as we leave oil behind, that replacement item will become the new oil.
 
<p>Here more info on switchgrass:</p>

<p> <a href="http://en.wikipedia.org/wiki/Cellulosic_ethanol">en.wikipedia.org/wiki/Cellulosic_ethanol</a></p>

<p> <a href="http://www.alliantenergy.com/docs/groups/public/documents/pub/p011101.hcsp">http://www.alliantenergy.com/docs/groups/public/documents/pub/p011101.hcsp</a></p>

<p>Sounds awesome but may be far away. . .</p>

<p>BTW: There is an Irvine company that is going to build an ethanol plant in Corona</p>

<p><a href="http://www.ocregister.com/ocregister/money/homepage/article_1593684.php">www.ocregister.com/ocregister/money/homepage/article_1593684.php</a></p>
 
<p><strong>Speeding on the highway adds a surprising amount to your fuel costs.</strong></p>

<p>http://finance.yahoo.com/family-home/article/104752/Slow-Down-a-Lttle-Save-a-Lot-of-Gas</p>
 
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