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.