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#4480499 - 08/06/17 07:46 AM Gas prices related to current vehicle efficiency?
motor_oil_madman Online   content


Registered: 11/29/09
Posts: 4848
Loc: Houston, Texas
Remember back 10 years ago most everyone drive big SUVs that got 13mpg and gas was $4/gal? Well now most everyone has a vehicle that gets atleast 20mpg and gas is much cheaper. Are the two related? Or is it a coincidence?
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#4480509 - 08/06/17 08:00 AM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
Crispysea Offline


Registered: 04/14/17
Posts: 402
Loc: TN USA
Coincidence. The price is connected to demand, but I still see plenty of SUVs where I live. It's due to the supply more than anything else right now. Oil drilling, and especially fracking, has become very efficient.


Edited by Crispysea (08/06/17 08:02 AM)

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#4480519 - 08/06/17 08:09 AM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
Linctex Offline


Registered: 12/31/16
Posts: 6148
Loc: Waco, TX
Originally Posted By: motor_oil_madman
Are the two related? Or is it a coincidence?


Not exclusively, but yes - they are.

I read an article a few months ago that said due to vehicle downsizing, better use of public transport and more bicycles, etc - we are actually using LESS fuel now than we were 5-8 years ago (my memory is fuzzy).

This (along with new oil fields) has driven down the price for fuel - - there's just not the demand for it that there was.
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#4480522 - 08/06/17 08:11 AM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
Linctex Offline


Registered: 12/31/16
Posts: 6148
Loc: Waco, TX
We are down to "Pre-1998" usage levels

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#4480547 - 08/06/17 08:30 AM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
fdcg27 Offline


Registered: 09/25/09
Posts: 15693
Loc: OH
Originally Posted By: motor_oil_madman
Remember back 10 years ago most everyone drive big SUVs that got 13mpg and gas was $4/gal? Well now most everyone has a vehicle that gets atleast 20mpg and gas is much cheaper. Are the two related? Or is it a coincidence?


Ten years ago we bought our first Forester even though it wasn't a fuel economy champ.
We also still had our '97 Aerostar, which would average 20 mpg+ as well as '97 and '99 5spd Accords that would easily beat 30 mpg.
Most models are on five year cycles, so the fuel pricing that made it look like we'd passed peak oil production encouraged manufacturers to develop more efficient models for their next generations while the less efficient current models were basically set in stone during their life cycles.
We are now reaping the benefits of that with 30 mpg Subaru Foresters and 20 mpg pickups.
There probably is a relationship between the average consumption of the national vehicle fleet and fuel prices, since supply is plentiful and demand is lower.
Markets must clear and price is determined by supply versus demand.
I'll add that hundred buck oil spurred a huge increase in exploration and development, just as microeconomic theory would predict.
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#4480590 - 08/06/17 09:18 AM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
bullwinkle Offline


Registered: 10/09/04
Posts: 7664
Loc: Cincinnati, OH, USA
Thanks to those unpopular frackers!!
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#4480687 - 08/06/17 11:26 AM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
Kestas Offline



Registered: 06/04/02
Posts: 12326
Loc: The Motor City
One has to realize that much of the technology we have today to gives us better gas mileage was developed during the era of $4 per gal. You have to allow for the lag effect. If you look at what auto manufacturers ar working on now you'll see 600-800 HP engines.

I remember a lot of shortsighted posters on this site 8 years ago screaming, "Why can't American automakers make fuel efficient vehicles like te Japanese do?".... completely oblivious to how manufacturing lead time works, and what it takes to make cars that people want and earn a profit.

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#4480732 - 08/06/17 12:16 PM Re: Gas prices related to current vehicle efficiency? [Re: bullwinkle]
Wolf359 Offline


Registered: 04/27/12
Posts: 4746
Loc: MA
Originally Posted By: bullwinkle
Thanks to those unpopular frackers!!


Unpopular with who? They're great for motorists and the US as they helped drive down oil prices. Probably unpopular with Opec and tree huggers. As the saying goes, all power corrupts, but we need the electricity.

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#4480736 - 08/06/17 12:21 PM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
jackz Offline


Registered: 12/18/10
Posts: 39
Loc: Cape Coral Fl.
The gas mileage on minivans and full size non elect. motors have not gained in fuel mileage. A dodge mini gets the same mileage as many years past. Full size vans have had very small increase if any.

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#4480757 - 08/06/17 12:40 PM Re: Gas prices related to current vehicle efficiency? [Re: jackz]
motor_oil_madman Online   content


Registered: 11/29/09
Posts: 4848
Loc: Houston, Texas
Originally Posted By: jackz
The gas mileage on minivans and full size non elect. motors have not gained in fuel mileage. A dodge mini gets the same mileage as many years past. Full size vans have had very small increase if any.


Instead of driving a Ford expedition, many people now have the crossovers, which get very good mileage now like 22mpg combined I believe.
_________________________
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#4490606 - 08/16/17 10:05 PM Re: Gas prices related to current vehicle efficiency? [Re: Crispysea]
JohnnyJohnson Offline


Registered: 10/22/09
Posts: 2737
Loc: Wet side WA
Originally Posted By: Crispysea
Coincidence. The price is connected to demand, but I still see plenty of SUVs where I live. It's due to the supply more than anything else right now. Oil drilling, and especially fracking, has become very efficient.


Not true every time there is a glut of gas Opec goes into price fixing mode. Currently we have that going on. We have $50 crude and gas is nearly $3 a gallon here. It was only $4 plus when crude was $100.
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#4490853 - 08/17/17 09:19 AM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
Crispysea Offline


Registered: 04/14/17
Posts: 402
Loc: TN USA
That's due to your gas taxes. You're on the West Coast, right? Outside the high tax areas, gas is at $2/gal or less.

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#4497893 - 08/25/17 03:48 PM Re: Gas prices related to current vehicle efficiency? [Re: Crispysea]
JohnnyJohnson Offline


Registered: 10/22/09
Posts: 2737
Loc: Wet side WA
Originally Posted By: Crispysea
That's due to your gas taxes. You're on the West Coast, right? Outside the high tax areas, gas is at $2/gal or less.


Yes but now its over $3 and they haven't increased the taxes again. $3.49 today at a Shell station I drove right by~


Edited by JohnnyJohnson (08/25/17 03:49 PM)
_________________________
2004 Toyota Corolla 121668
Out: QSUD 5W-30 Purolator One 5030
In: Valvoline ML 5w-30 TG4967 117530 2-8-18
2006 Duramax 74047
Out: T6 5W-40 M1-303
In: T6 5W-40 XG9100 73752 4-22-18

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#4498226 - 08/25/17 10:33 PM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
DeepFriar Offline


Registered: 10/31/13
Posts: 1367
Loc: Georgia
The inability of OPEC particularly to up-price in the face of US production seems to be the main driver holding prices down. But the declining consumption also helping hold prices down is making the tax collectors squeal. I think we're about to see a wave of fuel tax increases that would put a floor under gas prices. I don't know what the impact of a possible reduction in fuel economy standards will be. Getting to numbers like 54 mpg will cause car purchae prices to go up of course and I have to wonder if it's worth it given that "peak oil" is history.

In the industrialized world our cars are close to (and in some cases achieving) better exhaust emissions quality than the raw air that goes into the motor. In a world where the emissions of a handful (15 is the reported number) of container ships put out more air pollution annually than ALL the cars on Earth we need to stop and think a bit harder. When I see that a Ford Escort can cost up to $35k, and so many other vehicles costing silly money for what they are, I start getting the feeling I'm getting hustled with all of the lower emissions and more safety this and that. What I wonder is are we simply helping prop up the percentage margins for manufacturers and sales tax receipts for governments.

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#4500491 - 08/28/17 04:03 PM Re: Gas prices related to current vehicle efficiency? [Re: motor_oil_madman]
Lolvoguy Offline


Registered: 02/06/14
Posts: 2333
Loc: Canada
Originally Posted By: motor_oil_madman
Originally Posted By: jackz
The gas mileage on minivans and full size non elect. motors have not gained in fuel mileage. A dodge mini gets the same mileage as many years past. Full size vans have had very small increase if any.


Instead of driving a Ford expedition, many people now have the crossovers, which get very good mileage now like 22mpg combined I believe.


crzy

22 mpg is considered "good"?

...oh wait, your in Texas.
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