Check out this article:
http://money.cnn.com/2007/12/18/news/economy/gas_demand/index.htm?postversion=2007121812
They claim that when gas costs around $3/gallon, that people start to reduce the amount of driving that they do. Do you think this is true? Have you been trying to reduce your driving since gas hit $3???
Me, I've been trying to reduce my driving ever since gas hit $2!!! However, I haven't reduced it much, I still have to go to work and things like that.
2007-12-19 06:12:43 · 9 answers · asked by qu1ck80 5 in Environment ➔ Conservation
About the same. I think the true breaking point will be much higher like $8. However, I was very picky about mpg last year when I bought a new car.
At $8 we will see people only driving when they really have to. And ironically that will drive prices down fast due to reduced demand. Then the cycle begins again.
The real problem is the huge demand for oil around the world. This combined with the industry not being able to significantly increase production. The world wide breaking point will likely come about the year 2012 according the peak oil folks. We shall see.
This is a good site on the subject of peak oil http://www.lifeaftertheoilcrash.net/
2007-12-19 06:20:48 · answer #1 · answered by mikearion 4 · 3⤊ 0⤋
Last year when it first hit $3, I saw a change in habits of people I knew - coworkers carpooling, consolidating trips, etc., but then when gas went down they quit those things. Then when it went back up, they didn't start them up again. It wasn't as big of a shock the second time I guess. Personally I try to limit my auto use by walking to work several days a week, but I don't see many other people out there. There are lots of people who don't have a lot of good options right now if they live far from their work or other travel requiements. Small towns usually have poor or non-existent public transportation. It would be so nice if our country would invest more into mass transit so folks would have an option that would be economical and more environmentally friendly. Of course, many people will need gas prices to go up a lot before they will consider anything less flexible than a personal car for travel.
2007-12-20 19:52:32 · answer #2 · answered by jb22 1 · 0⤊ 0⤋
"They" don't speak for everyone. I drive 300 miles a week, mostly for work. I cannot significantly cut the number of miles I drive because to take the bus or the train to work would cost more. Gas can hit four bucks, I will just work a couple of more hours of overtime a week. No big deal. Besides, it is going to take closer to five bucks to get people to cut their driving substantially. Every weekend I see just as many RVs with jet skis, ATCs, dirtbikes and other toys heading out of town as I ever did, even from the days of fifty cent gasoline in the mid 1970s. Traffic in southern California has gotten progressively worse and there are way more cars than there was 30 years ago, even though fuel has become progressively more expensive as well. The deal is, adjusting for inflation eases the blow, and fuel isn't really more expensive than it was years ago. If incomes stop rising and fuel keeps going up, that's when you'll see significant changes in people's driving habits and the vehicles they drive.
2007-12-20 19:36:44 · answer #3 · answered by Me again 6 · 0⤊ 0⤋
Actually if you look world wide, we have pretty low gas prices, especially compared to europe and asia. I don't think it's so much that people are driving less, so much as they're consolidating their trips. they don't drive to the store for JUST milk, or JUST something for dinner, they plan to make more stops in one trip. As for a tipping point, I don't think that will happen until it hits close to $5. Also consider the time of year, this is winter and as things go, gas consumption in the US is typically down in the winter months. If this were summer and demand were up, so would be the prices. People will always get from point A to point B and in this country that primarily means by car. I think what we'll start to see is more light rail and mass transit being phased in over the next 10 to 20 years, as I don't expect gas prices to ever go back under $2 at this point, the oil companies have us where they want us, and gas in the life blood of the country.
2007-12-19 14:25:17 · answer #4 · answered by xsailor367 3 · 1⤊ 0⤋
My opinion is that there would be some moderate change in habits at $4 per gallon and drastic changes at $5 per gallon. What amazes me are the conspiracy theorists who think that Big Oil, Big Auto and the President will work together to get the price where they want it, but they still go out and buy a Suburban or an Expedition anyway!! Why would you want to hurt yourself financially just because you think it's a conspiracy?
2007-12-19 14:40:25 · answer #5 · answered by The Oracle of Omigod 7 · 3⤊ 0⤋
Since I don't see anyone even slowing down to the speed limit at the current prices, I don't expect anything that happens to convince them to do a real reduction in driving.
2007-12-19 14:22:16 · answer #6 · answered by Agent 00Zero 5 · 3⤊ 1⤋
Gas is $0.12 in Venezuela if you prefer that....
It's like $6.82 in Norway and Hong Kong and in a few other places.... so don't complain too much...
2007-12-19 14:20:51 · answer #7 · answered by Diamond 3 · 3⤊ 0⤋
$3.00/gal is still short of the all time high for gasoline (in real dollars) reached in the 80s.
2007-12-19 14:40:55 · answer #8 · answered by Anonymous · 1⤊ 0⤋
I really don't see much difference in the amount of traffic as fuel prices climb.
In my own personal conspiracy theory... It seems like the oil companies look to see how much we will pay and set their prices accordingly.
2007-12-19 14:17:33 · answer #9 · answered by Voice of Reason 5 · 0⤊ 3⤋