Tag: gasoline

Reuters: Gasoline prices begin falling, may be past 2011 peak

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gas prices chart

The price of a gallon of crude may have dropped by $16 in the past month, but for the most part, gas prices haven’t followed suit. In fact, the nationwide average hit $4 per gallon just last week, or $1.10 higher than it was at this time in 2010.

But while relief at the pump feels far from fruition, Reuters reports that the worst may be behind us. Gas prices have dropped to a national average of $3.96, the first decrease in eight weeks. Diesel fuel is cheaper as well, down 4.3 cents to $4.03 per gallon.

Phil Flynn of PFGBest Research in Chicago reportedly told Reuters, “I think we’ve turned the corner and we should expect to see substantial price drops in the coming weeks.” Flynn adds that we should see a national price of $3.50 per gallon at some point in the summer. Guy Caruso of the Center for Strategic and International Studies goes a step further, speculating that we may have already seen the peak gas price for 2011.

It’s hard to believe that we’re looking forward to $3.50 per gallon gasoline, but even a cut of 50 cents per gallon can be a big relief on the family budget. If, for example, you drive 15,000 miles per year and your vehicle averages 25 miles per gallon in mixed driving, a per-gallon drop of 50 cents could result in another $300 in your pocket at the end of the year.

It’s still early, but we’re thinking that the downward trend of oil prices means that relief at the pump is relatively close. Of course, we’re not likely to pay $2.50 per gallon again anytime soon, but we’ll take whatever we can get.

Reuters: Gasoline prices begin falling, may be past 2011 peak originally appeared on Autoblog on Wed, 18 May 2011 13:30:00 EST. Please see our terms for use of feeds.

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Report: Americans using 8% less gasoline than 2006 peak, will never go up again

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American oil well

Peak oil, according to the great and all-knowing Wikipedia, “is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline.” Regardless of your opinions on whether or not the planet has entered into its Peak Oil stage, it would seem that the United States has at least entered the stage of steady decline in usage.

Here’s the hard data according to the Associated Press: Americans averaged about 8.2 million barrels of oil, or 344 gallons, per day in 2010, which is an eight percent drop since the country’s peak in 2006. Experts seem to agree that gasoline usage in the States will continue to drop – as much as 20 percent by the year 2030, despite millions of additional cars on the roads – barring any unexpected periods of economic boom or another meteoric drop in fuel prices.

Before environmentalists get too excited, though, the falling trend of gasoline usage only applies to the United States, which is still by far the world’s largest consumer of oil. Demand from emerging countries, especially China and India, will more than make up for the declining usage in the U.S., leading to an expected record of 88.3 million barrels of oil produced in 2011. The more things change, they more they stay the same…

[Source: The Associated Press via Google | Image: Farther Along via CC 2.0]

Report: Americans using 8% less gasoline than 2006 peak, will never go up again originally appeared on Autoblog on Wed, 22 Dec 2010 15:31:00 EST. Please see our terms for use of feeds.

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