June 4, 2008, - 12:14 pm
Schlussel Auto Industry Source: U.S. Gas Usage Levels Down to 1974 Levels
By Debbie Schlussel
We already know that rising gas prices are affecting the American economy in many far-reaching waves, from rising food prices to more businesses going out of business.
But a auto industry source of mine tells me that Wall Street financial analysts, with whom he consults on the auto industry, say that America’s gas purchasing and usage in autos is down to 1974 levels.
If accurate, that’s an especially drastic change since:
* At that time, there was an oil embargo and gas was scarcer and rationed (odd numbered and even numbered license plates allowed gas only on alternate days); and
* America now has far more cars on the road–geometrically far more.
Will gas hit $7 a gallon by early 2009, as some are predicting? Don’t count it out.
Sadly, our own leaders counted themselves out, by doing nothing to:
* Develop alternative fuels and energy sources; and
* Push for oil drilling offshore and in Alaska.
Like diamonds, the price of gas is artificially high because, for once, OPEC countries are actually finally keeping their anti-competitive agreements to limit production. If we drilled offshore and in Alaska, it would likely bring down the price a great deal.
And if only we could get a President that is serious on these issues, rather than lip service while he counts his future Saudi and other Gulf State contributions to his future Presidential Library.
Finally, the Wall Street Journal also claimed that aside from China’s growing use of oil, it steeply increased its use of gas (and, also, hoarding of diesel, too) in its endeavor to put on the Olympic Games–making the price for the rest of us climb even higher. Yet, another reason I hate “The Games.”
And this is all going on before the election. Think how much worse it will be after the election.
c f on June 4, 2008 at 1:07 pm