In line with the national trend, high gas prices drive changes in California fuel consumption

May 4, 2009 at 3:08 pm

(Source & Image: LA Times)

Drivers are turning to alternative fuels and cutting consumption.
 
Dick Messer is paying a pretty good price these days to fuel his drive from Riverside to work: the equivalent of about $1.35 a gallon. But Messer, who has collected, restored and raced gasoline-powered cars for more than 50 years, isn’t commuting on gasoline anymore to his job running the Petersen Automotive Museum in the mid-Wilshire area of Los Angeles.
Messer still owns such classic rides as a 1963 Lincoln Continental, a 1953 Cadillac Fleetwood and a Saleen Mustang. Yet the only car Messer wants to talk about is the $24,000 Honda Civic GX that runs on compressed natural gas, which he bought in February 2008 as gasoline prices rose toward a July peak above $4 a gallon.
“I can get to the museum from my home in Riverside and back on one tank easily,” driving alone in the carpool lane, Messer said. “I pay $1.35 a gallon to fill it up, and the price is capped at $1.99 a gallon. I’ll never have to pay more than that. No matter what happens to the price of gasoline.”
Messer is hardly alone in his aversion to steep gas prices. California drivers appear to believe that gasoline shouldn’t cost more than $2 a gallon, and they have been proving it for nearly three years. 

Gasoline consumption in California began falling in April 2006, and for 11 straight calendar quarters dropped below gas use in the year-earlier period even though the state added 790,000 new licensed drivers. First-quarter gasoline use hasn’t yet been released by the California State Board of Equalization, which on Thursday said Californians consumed 1.21 billion gallons of gasoline in January, down 22 million gallons, or 1.8%, from the previous January. 

Agency statistics show the pattern began between January and September 2005, when the average gas price climbed from $1.96 to $3.06. 

That was California’s first brush with $3-a-gallon gas. It lasted just two weeks in 2005, according to the Energy Department’s weekly survey of filling stations, but it was long enough to trigger behavior changes.

For all of 2005, gasoline consumption rose by just 30 million gallons to 15.95 billion gallons, according to the state equalization board, which gathers the numbers from taxes paid by fuel distributors. The pace was well off the boom years from 2000 to 2004, when gas use grew by an average of 343 million gallons a year.

“The tipping point is $2,” said Amy Myers Jaffe, senior energy analyst at Rice University’s James A. Baker III Institute for Public Policy in Houston. “People start to respond to fuel prices and make changes at $2 a gallon. At $3 a gallon, it becomes noticeable. It really gains in momentum. The longer the price stays higher than $3, the deeper and more lasting the structural changes.”

In 2007, with gasoline prices above $3 a gallon for 34 weeks, California consumption fell 270 million gallons below 2005 levels. In 2008, with gasoline topping $4.58 a gallon in July and the depth of the nation’s economic crisis beginning to sink in, Californians used 910 million fewer gallons than they did in 2005.

Messer turned to a different fuel. Stephen Stone of Norwalk bought an all-electric Zap Xebra. Robert Cruz of Oxnard went back to a 1970 Volkswagen because it got better mileage than anything else he’s driven. Alan Thomas of Oxnard adds a few gallons of transmission fluid to his tank to cut fuel costs.

“Sometimes I just used to go out and take a drive,” Thomas said. “When was the last time you heard anyone say, ‘I’m going out for a drive’? I don’t drive any more than I have to now.”

Millions of other Americans also are parking more. A 2008 Brookings Institution report called “The Road . . . Less Traveled” found that “consistent annual growth” in vehicle miles traveled in the U.S. leveled off in 2004. By 2007, miles driven declined for the first time since 1980 and at the fastest rate since the end of World War II, said Robert Puentes, senior fellow at Brookings’ metropolitan policy program and a co-author of the report.

“Americans have simply been driving less. . . . At the same time driving has declined, transit use is at its highest level since the 1950s, and Amtrak ridership just set an annual ridership record in 2008,” Puentes wrote.

Some experts say Americans are far less likely to accept high fuel prices than their European counterparts.

In the U.S., “we have always had cheap gasoline for the most part and most Americans don’t feel like they have that much of an alternative,” said Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University in Dallas. “The higher prices go here, the more people feel like they are being taken for a ride.”

Another factor in changed driving behavior is anger, said Suzanne Shu, an assistant professor of marketing at the UCLA Anderson School of Business. Price surges in other consumer items, such as milk, tend to get lost in larger grocery bills. But buying gas is often a trip of its own, and the price is “in your face, almost every block,” Shu said.

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Starbucks coffee – $1.75; Cost of not having a cup while on duty – a Nuclear catastrophe! Two U.S. Navy vessels collide in Strait of Hormuz

March 20, 2009 at 7:13 pm

Source: Los Angeles Times;  Photo Via : U.S. Navy handout / EPA)

USS New Orleans and USS Hartford collide in Strait of Hormuz

 Pics: Photos released by the U.S. Navy show the New Orleans, left, participating in a training exercise in the Pacific Ocean November 2008 and the Hartford moored off the U.S. Naval Academy in Chesapeake Bay March 1999.
The nuclear-powered submarine Hartford and the amphibious transport dock New Orleans were heading into the Persian Gulf at the time. Fifteen sailors are slightly injured.

A nuclear-powered Navy submarine collided with another U.S. warship in the narrow Strait of Hormuz early today in what officials are calling the first incident of its kind in the Persian Gulf.
At least 15 sailors aboard the Los Angeles-class nuclear-powered submarine Hartford were slightly injured when it collided with the amphibious transport dock New Orleans, the Bahrain-based 5th Fleet announced.  The Navy said the Hartford’s nuclear propulsion plant was undamaged. But the collision ruptured the New Orleans’ fuel tank and caused the spillage of 25,000 gallons of diesel fuel.
Defense officials in Washington said there appeared to be serious damage to the upper part of the sub, called the sail. Initial assessments indicated it could be repaired. The extent of damage to the other vessel was less clear.

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Airline fare wars treat fliers to ‘ridiculously low’ prices

March 20, 2009 at 3:17 pm

(Source: USA Today)

Air travelers stand to be the beneficiaries of “ridiculously low” airfares as fare wars break out among U.S. airlines desperate to fill seats amid sagging demand. Even those hoping to travel during the peak-period summer months stand to benefit, according to the Los Angeles Times. The paper writes that “fares for summer trips are often among the highest of the year and start rising in the spring, but not this year. With business travel plummeting, airlines are pulling back and offering some of the lowest-priced plane tickets in recent memory.”

Those fare wars got a boost yesterday with the latest salvo fired by Southwest, which announced a new nationwide fare sale that covers travel for almost all of the busy summer travel period. “This is a whopper of an airfare sale,” Tom Parsons, CEO of air travel website Bestfares.com, tells the Times. “They are doing everything they can to make you fly.” The sale caps fares on most days at $99 each way and unusually broad — “a very good deal,” according to fare-tracking site AirFareWatchdog.

The Boston Globe writes “the move nearly immediately rippled through the industry on competing routes.” Indeed, the Times notes “major airlines including American, United and Delta matched the fares on most of the routes flown by Southwest.” As for the latest round of fare sales, the Airline Biz blog at The Dallas Morning News calls the current discounts “pretty meaty.” Airline Biz author Eric Torbenson adds that “one thing is abundantly clear: Demand is dropping a lot more than airlines guessed when they built their schedules last year because despite taking 10% to 15% of their capacity out of the system, bookings are pretty awful.”

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Hybrid cars sales in the US are falling at a ‘breakneck pace’

March 18, 2009 at 3:30 pm

(Source: Financial Times)

Despite the US government’s determination to increase efficiency standards and become energy independent, hybrid cars sales in the US are falling at a ‘breakneck pace’ – even faster than overall car sales, reports the LA Times:

Last month, only 15,144 hybrids sold nationwide, down almost two-thirds from April, when the segment’s sales peaked and gas averaged $3.57 a gallon. That’s far larger than the drop in industry sales for the period and scarcely a better showing than January, when hybrid sales were at their lowest since early 2005.

In July, U.S. Toyota dealers didn’t have enough Prius models in stock to last two days, and many were charging thousands of dollars above sticker price for the few they had.

Today there are about 80 days’ worth on hand, and dealers are working much harder — even with the help of $500 factory rebates — to move the egg-shaped gas-savers off lots from Santa Monica to Miami.

The gist of the story is even though hybrids are more expensive and therefore less attractive to consumers in these recession-bound times, car makers are compelled by government regulations to continue developing them. Hybrid cars are not particularly profitable for the industry either; Toyota only recently began to turn a profit on its Prius.

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Metrolink union opposes video cameras inside locomotives

March 4, 2009 at 8:57 pm

(Source:  LA Times)

A top union official representing Metrolink engineers told federal authorities this morning that the union opposes a key reform proposed by the agency in the wake of the Chatsworth rail disaster: installing video cameras inside locomotives.train-operators

The comments came during the second day of sworn testimony in a National Transportation Safety Board hearing investigating the Sept. 12 catastrophe that killed 25 people and injured 13 others.

“We certainly don’t support the requirement or the installation of any recording device” inside train cabs because of privacy concerns, said William Walpert, national secretary treasurer of the Brotherhood of Locomotive Engineers and Trainmen.

His comments put the union in direct opposition to Metrolink, which has said it is moving forward with plans to install video cameras in train cabs later this year to help prevent activity such as cellphone use by engineers or allowing unauthorized people to ride in the cabs.

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