Thursday, December 23, 2010

Gas 2.0

Gas 2.0

Commercial Trucks to be Biggest Growing Hybrid Market

Posted: 23 Dec 2010 01:25 PM PST

For many companies, fuel is a huge overhead factor that drives up the cost of doing business. So it should come as no surprise that hybrid commercial vehicles could be the biggest growing hybrid market, according to a new survey.

The study, by Pike Research, says that even though there were just 9,000 such hybrid commercial vehicles sold in 2010, by 2015 the market could increase to 100,000 annually. That's a tenfold increase in just five years. Why?

Rising fuel costs and a contracting economy means that for many businesses, a few mpg's can mean the difference between bankruptcy and staying in the black. Plus, as hybrid vehicle technology improves, the prices go down, meaning the payback period from initial purchase is shrinking. After a certain point, the extra cost of the hybrid system pays for itself, and from then on out, the extra fuel saved is pure profit.

When a company buys a vehicle, generally they hold on to it as long as possible, meaning these cars can see hundreds of thousands of miles. Some companies, like UPS and even government agencies like the USPS are already experimenting with different fuels and drivetrains.The study took account for five different kinds of hybrid and electric vehicles, including plug-in, battery electric, hydraulic hybrid, and "mild" hybrids. While hybrid and electric personal cars might take longer to catch on, businesses are starting to see fuel efficient and alt-fuel vehicles as a way to not just improve their image, but to save them money too.

Makes perfect sense to me, but will the hybrid market really grow that big, that fast?

Source: Pike Research Image: UPS

Chris DeMorro is a writer and gearhead who loves all things automotive, from hybrids to Hemis. You can follow his slow descent into madness at Sublime Burnout.

Americans Demand for Gas Never to Rise Again?

Posted: 23 Dec 2010 09:57 AM PST

Gas prices are going up, but demand for petroleum is going down in the U.S. The Associated Press says that demand for petroleum fuel in 2010 is down 8% from its peak back in 2006. Will this downward trend continue?

The year isn't quite over yet, but AP says that Americans used on average 344 million gallons of gasoline per day, a little more than a 1.1 gallons per day, per person (there are now over 308,745,538 people in the U.S. according to the 2010 Census). That is 8% less than the peak of U.S. demand in 2006, when America used about 374 million gallons of gas every day. So America really is using less fuel, and while it's a gradual decline (about 2% a year), it's certainly better than nothing. This decline has taken place without the glut of hybrid and electric cars destined to hit showrooms in the next two or three years, so a big drop off could be coming. And while I still think it is too early to call, America could be on its way to a permanent decline in gas usage. At the very least, Americans are trying to curb their usage, either to keep more money in their pocket or more emissions out of the air.

Then again, even as demand for gas in the U.S. declines, developing nations like China and India are bursting at the seams with new money ready to buy a car. China alone could start seeing car sales exceed 50 million vehicles a year as early as 2030. Maybe they won't make the same mistakes and ignore infrastructure in favor of personal transportation, but as somebody who loves cars, I know the appeal and allure of a car purchase all too well. Will there be enough to go around?

Source: Associated Press

Chris DeMorro is a writer and gearhead who loves all things automotive, from hybrids to Hemis. You can follow his slow descent into madness at Sublime Burnout.

Gasoline Prices Hit $3 a Gallon Nationwide

Posted: 23 Dec 2010 06:56 AM PST

Today, the national average price for a gallon of gas has risen to over $3 a gallon for the first time since October, 2008, when it felt like the bottom had just dropped out of the American economy.

According to the AAA Fuel Gauge Report, the price for a gallon of gasoline nationwide hit $3.013. California once again has the highest gas prices in the Lower 48 states, hovering at about $3.27 a gallon. In total, 26 states plus the District of Columbia have gas prices exceeding $3 a gallon, while Colorado has the lowest average gas prices, about $2.75 a gallon. The rise in gas prices coincides with a rise in crude prices, which recently topped $90 a barrel…another high not seen since October, 2008.

As I remember it, gas prices used to go down in the winter, not up. While these prices are still more than a dollar off the 2008 peak average gas price of over $4.11 a gallon, prices are up 4% from a month ago, and 16% from the same time last year when the average price of a gallon of gas was $2.58. The chart above shows gas prices gradually climbing back to where they were two years ago, a scary prospect at a time when our economy feels like it is finally gaining traction again.

At a 4% per month price increase, we'll be paying $3.62 a gallon by mid-summer, if not more. This will be the first Christmas on record where gas exceeds $3.00 a gallon, though that won't stop 85.7 million people AAA projects will be making their holiday journeys via automobile. At least they’ll be in good company grumbling about gas prices.

Merry Christmas and Happy Holidays from fossil fuels!

Source: AAA Fuel Gauge via CNN

Chris DeMorro is a writer and gearhead who loves all things automotive, from hybrids to Hemis. You can follow his slow descent into madness at Sublime Burnout.
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