Is $4 Per Gallon Gas Here To Stay?


One link swept past my Twitter account recently, “What High Gas Prices Mean for Renewable Energy“. After reading, I got to thinking about why this latest spike in gasoline prices at the pump feels different.

As Christopher Steiner states in his book, $20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better, we, as a society will adapt to this inevitable rise in the price of gas with modifications in our behavior and technological innovations. It won’t be all doom and gloom as some predict. Mostly, the change will benefit us in the long run.

So, what is different this time around? Have we adapted to the recent spikes in gas prices or are we changing our belief system of our vision for an oil-dependent world?

Some adapt by buying a hybrid, like a Prius, to take the sting out of higher prices at the pump. Recently, in Mill Valley, California I saw a staggering 5 Priuses (Prii?) converging into one intersection!

For most of the population, buying a new, high-priced hybrid is out of reach. Americans are keeping their old cars running longer and holding off on new car purchases. This trend puts downward pressure on gas efficiency in the aggregate as older cars stay on the roads longer.

American’s Adapt By Driving Less – A Lot Less

The result of multiple factors such as the slow economy, unemployment and increased telecommuting mean that we are driving far less than anyone had predicted.

In January, 2011, according to statistics compiled by the Federal Highway Administration, Americans drove a collective 222 billion miles or 727 miles traveled for every man, woman, and child in the country. But, in 2008, Americans averaged 757 miles per person.

We are seeing a steady decline in how much people are driving. January 2009 marked the fifteenth consecutive month in which the average American drove less than they had a year earlier.

Much of this trend in lower miles driven is due to the recession, lowered economic activity and high unemployment. But, the question of whether this trend will continue when the economy recovers still remains.

Will This Trend Continue?

There’s reason to believe that the average American will continue to drive less than they have historically (Paul Volcker, among others, endorses this idea.)

Have we adapted our lifestyle initially to save money, only to realize that we are happier spending less time in our cars? There could be many reasons contributing to our decreased time behind the wheel including more people telecommuting for one.

Whatever the reasons, the net effect points to our ability to adapt our lifestyles to meet changing societal conditions. This ability bodes well for us as the price of oil is sure to rise (as predicted by Steiner, et al).

Ways To Decrease Gas Usage and Save Money

  • Check your tire air pressure weekly and keep at recommended levels
  • Plan your errands before you leave the house. Combine together and make a loop for efficiency
  • Drive more efficiently by employing Hypermiling techniques, i.e. avoid fast breaking and accelerating
  • Turn off air conditioning when possible
  • Reduce weight by taking unnecessary items out of your car
  • Leave early – this gives you more time so you can drive slower and more efficiently
  • Begin carpooling or join a ride-share
  • Bike instead of drive to get where you’re going

This is only a short list of ways to save on your gas bill. Buying a more fuel efficient automobile is obviously a great idea if you have the funds. Some people make life changing decisions like moving closer to their work or vice versa.

If the average miles driven per person/per week is 240, at $4.00 per gallon, getting 30 miles to the gallon, the average amount spent on gas would be $96/month. If you have more than one driver in your household, get worse gas mileage or drive more than the average, your bill could be much higher. Now imagine gas at $6, $8 or even $12 a gallon! Think of how your driving habits might shift or change completely.

Gas prices are thought by many experts to be going higher in the near future. Based on my findings, I agree. Employing these tips can save you significant cash over the course of the year, while improving the environment.

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