(Source: Wall Street Journal)

A Journal front-pager recently noted an Arizona man charged with attacking a freeway speed camera with a pick ax. Here’s the rest of the story: He was fined $3,500, not given a parade.

But don’t despair. We still live in a democracy. One Arizona sheriff recently proved you could get elected by opposing speed cameras. Meanwhile, the state legislature is considering bills to dismantle the system created by Gov. Janet Napolitano when she faced a gaping budget deficit, before she escaped to the Obama Department of Homeland Security. Petitioners in Arizona are also gathering signatures to put the question directly before voters — speed cameras have never won when submitted to voters.

Even the Scottsdale City Council recently voted not to oppose the anti-camera bills in the state legislature.

Why is this important? Because Arizona, specifically Scottsdale, is home to the two biggest companies, American Traffic Solutions and Redflex Traffic Systems, in the incestuous world of promoting and operating traffic cameras for revenue-hungry governments.

Laid to rest long ago should have been the pretense that the goal is “safety,” not chasing cash. New York State, sinking under budget shortfalls, last week authorized a batch of new red-light cameras around the state. A recent investigation by the Detroit News showed that even conventional ticket-writing is driven by revenue needs. Said one cop: “When you’re being told how many tickets you need to write, to me that’s a quota.”

Consider: Red-light running and speeding, the two main uses of traffic cameras, are implicated in fewer than 8% of accidents. A far more prevalent cause of nondrunken accidents is driver inattention — one study estimated, in a typical case the driver’s eyes are diverted from the road for a full three seconds or more, fidgeting with a cellphone, disciplining the kids in the back seat, snoozing, blotting up spilled coffee, etc.

What’s more, if not for the idiotic diversion of research dollars to fuel economy, the most highly touted auto-industry breakthroughs today would be exactly in this area. Available now or coming soon are devices that warn a driver when he’s wandering out of his lane or when another car is in his blind spot, even applying the brakes to prevent a collision.

(Source: Wall Street Journal)

DALLAS — Since Henry Ford began mass production of the Model T nearly a century ago, car-loving Americans have gulped ever-increasing volumes of gasoline. A growing number of industry players believe that era is over.

Among those who say U.S. consumption of gasoline has peaked are executives at the world’s biggest publicly traded oil company, Exxon Mobil Corp., as well as many private analysts and government energy forecasters.

The reasons include changes in the way Americans live and the transportation they choose, along with a growing emphasis on alternative fuels. The result could be profound transformations not only for the companies that refine gasoline from crude oil but also for state and federal budgets and for consumers. Much of contemporary America, from the design of its cities to its tax code and its foreign policy, is predicated on a growing thirst for gasoline.

 As Americans commute less, use more fuel efficient cars and take more public transportation, gas stations have shut down. There are 11% fewer places to pump gas in the U.S. today than there were a little over a decade ago.

In the vast market for crude oil, American gasoline consumption matters. One of every 10 barrels of crude ends up in U.S. gasoline tanks, more than is used by the entire Chinese economy.

Right now, the recession is curbing U.S. gasoline consumption, as laid-off workers stop commuting and budget-conscious families forgo long road trips. Drivers filled their cars with 371.2 million gallons of petroleum-based gasoline every day in 2007, according to the U.S. Energy Information Administration. It expects that to fall 6.9% to 345.7 million gallons in 2009, as demand at the pump declines and the use of plant-based ethanol increases. Even if usage climbs after the recession ends, it won’t exceed 2007 levels, according to EIA forecasts.

Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.

Many industry observers have become convinced the drop in consumption won’t reverse even when economic growth resumes. In December, the EIA said gasoline consumption by U.S. drivers had peaked, in part because of growing consumer interest in fuel efficiency.

Exxon believes U.S. fuel demand to keep cars, SUVs and pickups moving will shrink 22% between now and 2030. “We are probably at or very near a peak in terms of light-duty gasoline demand,” says Scott Nauman, Exxon’s head of energy forecasting.

If Exxon is right, the full impact of falling demand for fuel would take years to be felt. But some deep changes are under way.

Click here to read the entire article.    Also, don’t forget to explore the interactive graphic that offers some stunning statistics.  Below is a video report from WSJ for this story. 

(Source: Wall Street Journal)

(Source: Bloomberg & Livemint.com)

Global airline passenger traffic fell 10 percent last month, the steepest decline since the recession began, led by a plunge in long-haul travel.

The decline, gathering pace from a 5.6 percent fall in year-on-year traffic in January, included a 12.8 percent reduction in passengers flown by Asia-Pacific carriers and a 12 percent drop among North American airlines, the International Air Transport Association said today in a statement.

While passenger numbers continued to deteriorate, the pace of declines in the freight market leveled out. International freight volumes were down 22.1 percent from a year ago, compared with drops of 23.2 percent drop in January and 22.6 percent in December, IATA said.

:  “Freight traffic, which began its decline in June 2008 before passenger markets were hit, has now had three consecutive months in the minus 22 to minus 23% range,” IATA added, says the Livemint.com (WSJ) article.

Giovanni Bisignani, IATA’s director general, said: “We may have found a bottom to the freight decline, but the magnitude of the drop means that it will take time to recover.”  But even as freight traffic stabilises, airlines are now feeling the squeeze in passenger traffic.

(Source:  Wall Street Journal Blog  – The Juggle)

I just had the fourth day in a row where I stood much of the way on my 40-minute subway ride. I’m 6.5 months pregnant–and it’s obvious–and not a single person offered me a seat. What’s more, sometimes I have had people literally push past me (I’m not as speedy as I used to be) to get the last seat on the train.

It’s not just me. Recently, a woman with a cast from foot-to-knee got on about 15 minutes into my ride. Nobody offered the casted woman a seat. So I did–it was a rare day that I’d snagged an empty seat. She refused because I am pregnant. I took the opportunity to shame my fellow passengers by saying, “It’s pretty bad when the pregnant lady is the only one offering someone with a cast a seat.” Nobody budged.

As a courtesy, I have always offered a seat to pregnant women, older people and anyone who was disabled, on crutches, or the like. It just seems like the human thing to do. (On some Japanese trains, a uniformed “manners squad” patrols cars to make sure that the elderly, disabled and pregnant have seats.)

Click here to read the entire blog. (Subscription Reqd.  Free Registration available). Also, if you have an extra minute, answer a quick poll @ Sodahead on this issue.

(Source: Wall Street Journal)

Last summer, when gas cost $4 a gallon, buyers snapped up small cars so fast that dealers couldn’t keep them in stock. Now, with gas prices half that level, almost 500,000 fuel-thrifty models are piled up unsold around the country.

The turnabout comes at a bad time for the struggling U.S. car industry, which has revamped factories and shifted product plans to produce more small cars in coming years. The moves are prompted by coming stricter federal fuel-economy standards and the Obama administration’s car-bailout plan, which encourages auto makers to boost their vehicles’ mileage.

 Practically every small car in the market is stacked up at dealerships. At the end of February,Honda Motor Co. had 22,191 Fits on dealer lots — enough to last 125 days at the current sales rate, according to Autodata Corp. In July, it had a nine-day supply, while the industry generally considers a 55- to 60-day supply healthy.For other models the supply situation is even worse. Toyota Motor Corp. has enough Yaris subcompacts to last 175 days. Chrysler LLC has a 205-day supply of the Dodge Caliber. And Chevrolet dealers have 427 days’ worth of Aveo subcompacts. At the current sales rate, General Motors Corp. could stop making the Aveo and it wouldn’t run out until May 24, 2010.

“I don’t think Americans really like small cars,” said Beau Boeckmann, whose family’s Galpin Ford in southern California is the country’s largest Ford dealer. “They drive them when they think they have to, when gas prices are high. But we’re big people and we like big cars.”

The logjam of small cars is caused in part by the recession, which has sapped sales of all types of vehicles. But it also underscores how badly gasoline prices have whipsawed the industry. A year ago, car companies rushed to react when Americans practically stopped buying large vehicles and flocked to hybrids and small cars.

Click here to read the entire article (Subscription Reqd.  Free Registration available).

(Source:  Wall Street Journal)

Ok. Ok. So this might be a bit wonky, but we never let a good chart go to waste.

This one – which appeared in a GAO report released Tuesday – shows the declining uncommitted balance in the Airport and Airway Trust Fund, a pool of money used to help pay for services such as the Transportation Security Administration and the Federal Aviation Administration.

The trust fund grew over the years mostly from the 7.5% excise tax on tickets and the federal segment fee of $3.40 assessed on every flight. Fuel taxes and other federal fees, like the international arrivals and departure tax, go into the fund as well. As ticket prices decline and travel slows, those taxes don’t produce as much revenue, and the government has been drawing down the fund, which originally was set up to pay for future modernization of air travel. The GAO reported that the uncommitted balance in the Trust Fund has decreased since fiscal year 2001.

Click here to read the entire article.

(Source: Wall Street Journal’s Environmental Capital Blog)

President Obama this week urged the country to boldly confront challenges and take responsibility for the future. Today he was starkly reminded by a Congressionally-appointed commission to do the same when it comes to filling the massive hole in the nation’s transportation budget.

In a report issued today, the National Surface Transportation Infrastructure Financing Commission said that raising gasoline taxes and taxing miles driven instead of gallons are the only viable ways to get the tattered U.S. road and transit system back on track. The Obama administration just shot down both proposals.

The recommendation was two years in the making—the commission’s mix of transport industry veterans, elected officials and think-tankers has been trying to divine how to raise the extra money needed to maintain and improve roads, buses, and trains.

Click here to read the entire article.