Tom in Kansas City

Oil Pressure Not Helping an Economy Under Stress

I had a VW bug in 1974 that got 35 MPG and by now we should be expecting double that 34 years later...


On May 27 02:01 PM HinesBrad wrote:

> I think we're missing some very obvious things that have happened
> in the last few years with the oil markets. One key observation I
> have made is that American cars overall have gotten bigger. The proportion
> of Americans driving big trucks, SUV's and vans has increased significantly
> in the last decade. Even cars - like the Nissan Altima, Honda Accord
> and Toyota Camry are about Double the size that they were 15 years
> ago. They also seem to get poorer fuel economy relative to what they
> did 15 years ago. Yes, the engines are better and more efficient,
> but those benefits are canceled out by having to haul a substantially
> larger car. I had a 1989 Honda Accord that got about 35 miles to
> the gallon highway. My new 2007 Accord gets 26 because it's much
> larger. The Civic of Today is the same size an Accord of yesteryear
> was.
>
> What this means is that there are a few obvious benefactors: Alternatives
> are finally becoming competitive with oil in price/benefit analysis.
> It means people will finally start scaling back on their consumption.
> People will also start buying smaller cars (which is FANTASTIC news
> for Hyundai, Kia, Honda, Toyota and Nissan). It also means that solar
> panel manufacturers, Biodiesel and other alternatives can finally
> get the capital infusion they need to become competitive with big
> oil. I'm actually excited to see oil go even higher - lower carbon
> emissions, a better chance for more market choices, and less jerks
> on the freeway going 20 miles an hour under the speed limit in their
> suburbans.
>
> Disclaimer: I hold positions in a Solar ETF: KWT, and I am also a
> shareholder in Honda Motor Company.