Picking up Nickels

Wednesday, January 17, 2007

US auto execs: gasoline $4 per gallon by 2015

An article at CNNMoney.com discusses a study conducted by the University of Michigan Transportation Research Institute (UMTRI), which predicts that gas prices will average slightly more than $4 a gallon by 2015 and just over $5 a gallon by 2020.

While it is encouraging to see that the automotive industry publicly admitting that sharp energy prices increases are in our future, it doesn't seem that much is being done to address the issue:

The survey also said the U.S. Corporate Average Fuel Economy (CAFE) standard for cars is expected to increase to 33 mpg in 2015 and 38 mpg in 2020 from the current 27.5 miles per gallon, while the standard for light trucks is expected to rise by 25 percent by 2015 and by 44 percent by 2020.

The $2.17/gal I paid for regular unleaded two days ago seems like highway robbery when compared to the 97ยข/gal gas I bought eight years ago in January, 1999. It's also hard to believe a gas price of $4/gal in eight more years will make current prices seem like a bargain.

I often wonder what will it take for someone to step up to the plate and offer a practical alternative to the "business as usual" attitude at large oil companies and auto makers. How long can the United States continue to line the pockets of oil rich countries that hate us and our way of life?


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