Gas Prices

July 11, 2008

Europe: Observations and comments

Munich Bike Lanes0001 I've just returned from a "busman's holiday" in Munich, where I was supposed to be on vacation. But that never happens, of course, because there is always a story around the corner.

Unlike many of my journalist colleagues, I don't travel much outside of my own continent, and this was only my second trip to Europe, which is probably why I was so wide-eyed. It'll all make its way into a newspaper story soon enough, but here are some of my observations:

- Unlike here, diesel is still cheaper than gasoline in Europe, but that's all relative. Keep in mind that a Euro was about $1.50 Canadian at the time when you look at the prices in the photo. Even so, I saw more large cars than I expected in Munich, which is probably due to that city's relative wealth. But small vehicles still make up the majority, including delivery vehicles which are far more compact than the big trucks we use in the cities here. The Ford Transit Connect can't get here fast enough.

Gas prices Munich0001 - Munich drivers drive. They don't talk on cell phones, drink coffee, eat hamburgers, put on makeup, read the newspaper or play with the stereo when they're piloting cars. In nine days, I saw two -- count 'em, two -- drivers talking into phones. Both of them were parking at the time, and both of them did a terrible job of it. I also didn't see any collisions, didn't see any gridlock-blocked intersections, didn't see anyone run a red light, and saw very few cars with any dents in them. Are European drivers perfect? Of course not. But from what I saw, they're sure a hell of a lot better than what we have over here.

- The cops drive BMWs and Mercedes. With stick shifts, if the model comes with one. As do the taxi drivers.

- Bicycles aren't children's toys or exercise machines, they are serious transportation. That picture at the top is of one of the myriad bicycle lanes in the city. Where the streets are large enough, there are three separate areas: cars on the asphalt, bicycles on a paved section of the sidewalk nearest to the road, and pedestrians on the inside of the sidewalk. (If you forget while walking and meander onto the bike lane, be prepared for the ringing bells; they don't stop for you or go around, because it's your responsibility to move.) On the largest streets, there's an electric tram right-of-way in the centre as well. No doubt because they're respected as road users, cyclists obey the rules: they stop for red lights, they stay off the pedestrian area, and they don't drive wherever it suits them -- from sidewalk to curb to turn lane to sidewalk -- as cyclists so often do here. Each bicycle has a light and a bell, and they use them.

- Germans may grumble about their public transit system, but by North American standards, it's incredible, with above-ground and underground city trains, electric trams, buses, and a train system that connects cities across the country. I got off the plane, got onto a train in the airport, and was in the city center thirty minutes later, at a cost of nine Euros. Try doing that from Pearson International to Union Station in Toronto, which is the equivalent; you're looking at two subway trains and a bus.

- Urban density also plays a part; I didn't see any single-family houses anywhere in the city center. Apartment buildings have stores and offices on their lower floors. People walk. Nowhere, even on the smallest side alleys, was I ever the only person on the street.

- And no wonder they walk. I ordered a salad in a restaurant; it turned out to be a dozen slices of sausage, topped with onions, dressing, and half a lettuce leaf, and it came with a giant pretzel. In for a penny, as they say, and of course I ordered a good German beer alongside. Hey, I wasn't driving.

June 29, 2008

Biofuel goes bankrupt: who knew?

Premium Fuel In the news today: ethanol plants in the U.S. are going bankrupt.

According to a news report on Reuters, soaring feedstock prices, rising construction costs, tight credit markets, and ethanol prices that haven't kept up with the soaring cost of gasoline are to blame for about a dozen U.S. ethanol plants filing for bankruptcy protection.

It also seems that, while gasoline companies are required by law to mix renewable fuels into the fossil stuff, they don't want to pay very much for it, and so the ethanol producers aren't getting enough to cover their costs.

This would all be deliciously ironic if it weren't for the fact that corn is in just about every product we eat or even touch these days. I've read about downward spirals from the times before my time -- the Depression, the Dust Bowl. It sure feels weird to look around and realize I'm in the middle of one.

June 21, 2008

Gas taxes: who will pay to repair our roads?

 Premium Fuel In a recent issue of AutoWeek magazine, Kevin A. Wilson -- possibly the most observant and common-sense auto writer on the continent -- brought up a point I'd not considered: as gasoline consumption drops, who's going to fund our roads?

Gas taxes don't just sit in the general coffers; they're used to build and maintain roads. If there's no money for maintenance, no one fixes the cracked pavement. Our roadbeds collapse and our bridges fall down, and eventually, the highway system deteriorates to the point that it starts destroying our cars.

As Wilson points out, cars that get better fuel economy use less gasoline, and electric cars don't use any liquid fuel at all. Less gas = less tax money = who's going to foot the bill for our roads? It's not justification for buying a gas guzzler by any means, but right now, while we're on the cusp of dramatically reducing our fuel consumption, we'd better spend just as much time figuring out how the infrastructure is going to be financed. A car that gets 60 mpg isn't much good if there's no place to drive it.

June 17, 2008

Everything is relative ...

Gasoline Some rambling thoughts on cars and driving for a Tuesday morning. Not necessarily right, not necessarily wrong, just ... observations.

Everything is relative: My everyday driver is a V8-powered, full-size pickup truck. That's bad these days. A family up in town owns a Prius and a Yaris. That's good these days. They have three children (one still in disposable diapers), a house that's approximately 2,800 square feet, central air conditioning, and up until the pesticide ban took effect out here, a Weed-Man sign on the lawn warning that it had been sprayed with poison. I have no children, my house is 900 square feet, I don't have air conditioning, and my gardens have been completely organic for the last 15 years. Hmmm.

What you can and can't do for fun: Going out for a couple of hours "just for a drive" is now frowned upon, because it wastes fuel and contributes to global warming. The RV and boating associations run regular ads on television urging people to take up these activities because they're fun. Hmmm.

That was how much?: There was a letter in today's paper regarding the blockade the CAW set up at General Motors here in Oshawa over the truck plant closing; the writer said that the autoworkers must obviously be paid too much money if they could afford the gas to drive slowly up and down the street for a couple of hours. Perhaps. But I can drive some 50 km on what I'd pay for a burger, fries and soda at the local fast-food joint. You seldom hear anyone complain that an autoworker's making too much money because he can afford to buy lunch at McDonald's. Hmmm.

Remember, Evian is "naive" spelled backwards: The gas station up the road is currently charging $1.34 per litre for regular gasoline. Go into the store attached to it, and the cheapest bottle of water is $1.00 for half a litre. I remember when there used to be conspiracy theories about backyard mechanics who'd invented special carburetors that would allow cars to run on H2O, but the auto and oil companies got wind of it and had them destroyed and the inventors hushed up. We never realized at the time just how lucky we were that they did.

May 28, 2008

Saving Gas: Common Sense

Premium Fuel  In the news today: the European Commission has launched a campaign to promote more energy-efficient driving. Over 45,000 fuel stations in 29 countries will take part in the campaign, distributing leaflets that explain fuel efficiency and "responsible driving behavior" to motorists.

"To reach our ambitious targets of CO2 reduction and energy savings, we have to make a big effort in all sectors," said Energy Commissioner Andris Piebalgs. "In certain cases this will require high-tech solutions, but in others we just need to apply some common sense. This campaign provides a set of simple tips to reduce CO2 emissions and save money, simply by driving more intelligently. Learning a few tricks will help (European Union) citizens to keep more fuel in their tanks, more money in their pockets and more CO2 out of the atmosphere."

Common sense. That's a phrase I hear bandied about a lot in North America, but it's usually mated to "technologies" or "plans"; I very seldom hear it in the same breath as citizens.

Last weekend I participated in a fuel efficiency driving challenge, which had me driving 250 km or so in a four-cylinder Honda. I won the fuel contest, averaging 6.8 L/100 km against the vehicle's published rate of 8.3 L/100 km. I sweated over every light, every hill, every unnecessary rpm, but I saved the equivalent of $2.03 per 100 km by the day's gas prices -- which is quite a savings when you add it up over the 20,000 km or so that the average vehicle travels in a year. No special technology, no fancy propulsion system, just a light foot and some common-sense driving. (And the realization that I would have saved even more fuel by not making an unnecessary trip.)

This is the part of the equation that's so often left out, and I applaud the European Commission for having the guts to target it. It's partly the car you buy, but more importantly, it's the way you drive it. North America doesn't want to hear that; North America wants the easy solution. North America wants to eat low-fat potato chips when it should be reaching for apples, or even deciding if it's hungry. Common sense: possibly the most uncommon element on the planet these days.

May 19, 2008

Electric vehicles: More than just the car

Nissan_electric_tama I just read a news report, a follow-up to Nissan's earlier announcement that it will sell a completely electric vehicle in the U.S. and Japan in 2010. The company has embarked on a full-scale study in Kanagawa Prefecture to set up a charging network and incentives program that can possibly be repeated nationally and even globally.

That's a huge report, and it's one that I hope to see with many more automakers.

Up front: I'm a fan of electric vehicles, and I think they're going to have an important place in the overall goal of sustainable transportation. But I also think that many of the people who champion them are not looking at the big picture overall.

I've spoken to many supporters, who tell me that people will simply plug the cars in at home, or plug them in at work, and that's the extent of their vision of infrastructure. The problem is that many of these supporters live in single-family homes, and work at small companies where running a few extension cords from the building isn't an issue.

But many more people live in apartment buildings, or in older city areas where they have to park on the street. Many work at large complexes or factories, where a few thousand cars might occupy the parking lot. Suddenly, the situation isn't so simple as these devotees like to think it is.

Any new technology is going to be chicken-and-egg; early motorists had to buy their gasoline from hardware stores, because gas stations had yet to be developed. By working on the hen as well as the egg, automakers and governments can help to make this happen. Maybe, in future, parking meters will charge the cars parked beside them. Maybe apartment parking lots will include stand-alone charging systems. Maybe, if they do, the electric car will be more than just a conveyance for a lucky few, and instead, become a feasible option for many.

May 13, 2008

Premium fuel: yes or no?

Premium_fuel

This was the sight that greeted me at the gas pump today when I filled up a vehicle. Fortunately, my ride called for 87 octane, which was "only" $1.25 per litre. The premium stuff represented a jump of 12 cents a litre. That would have added about eight bucks to my total.

The Internet's awash in articles on whether most cars really need premium. Few will come out and actually say you can run the lower-grade stuff, liability being what it is, but the general consensus seems to be that if it isn't turbo- or supercharged, the lower grade should see you through.

Things were different way back when, before cars had computerized fuel management systems and knock sensors, and using a lower grade could damage a higher-performance engine. Today's cars can make up the difference by dialing back a little, which shouldn't be too much of an issue to the average driver. I don't know about you, but I doubt I'd be able to tell if my car was producing 300 horsepower instead of 302.

I have another unproven pet theory, and it has to do with prestige and image. Many of the premium-brand manufacturers call for high-test across their entire product lines, regardless of engine size or horsepower. Call me a conspiracy theorist if you will, but I wonder if the thinking is that premium fuel = premium car ... and a car that takes "regular" fuel is, well, just a regular vehicle. In other words, it ain't the car that needs the expensive fuel, but the owner's ego.

May 12, 2008

Gas pump advertising: make it stop!

Gas_pump_ad0001 As if it isn't bad enough that I'm paying $1.25 a litre for 87-octane fuel, I now also have to listen to a television commercial while I pump my gas.

If you haven't seen one of these things yet, count your blessings, but trust me: it'll be coming to a station near you. It's a screen atop the pump that comes to life as soon as the pump turns on and gets ready to dispense fuel. While $62.83 quickly drained from my gasoline card to fill a Volvo tester, I got to listen to extremely annoying ads shilling pizza, bottled water, and something to do with the Olympic team.

Enough already. I can turn off my radio or television if I don't want to listen to an ad. The same courtesy should be extended when I'm at the pump. If I want to know about the price of pizza or whatever the Olympic team is doing, I'll make an effort to find out. In the meantime, I'd like the gas companies to shove these infernal advertising devices up their pipelines. Hard. Oh, and considering that these advertisers have paid Esso good money for the privilege of annoying me ... why isn't the gas any cheaper?

May 04, 2008

Long-term oil solutions: why bother?

In the news today: U.S. Senator Peter Domenici of New Mexico has introduced legislation that he says will dramatically increase domestic production of oil and natural gas, "in order to lower prices and make America less dependent on foreign sources of oil."

The bill will allow oil exploration and extraction in such places as Alaska, the Atlantic and Pacific Oceans at the edge of the Outer Continental Shelf, and development of oil shale in Colorado, Wyoming and Utah.

According to a press release, "By expanding production offshore and in Alaska, the legislation will produce up to 24 billion barrels of oil -- enough to keep American running for five years with no foreign imports."

In case that number got by you, I'll repeat it. Five years.

"The bill I'm introducing today will produce up to 24 billion barrels of oil through common sense measures to open up areas offshore and in Alaska for exploration," Domenici said.

Yes, you read that right. He actually said common sense measures. Apparently, in Domenici's world, it makes perfect sense to drill oil in the Arctic National Wildlife Refuge and irreparably change it for the sake of five years' worth of fuel.

Back to the press release: Domenici pointed out that had President Clinton not vetoed exploration in the Arctic National Wildlife Refuge in 1995, when oil was $19 a barrel, America would currently be receiving over one million barrels a day from Alaska.

Damn that Clinton. If only he'd given more consideration to people and less to those stupid wolves and caribou, we'd be able to drive our SUVs anywhere and anytime we please. What, didn't Bill even stop and question why Ford calls it an Explorer?

April 29, 2008

Our gasoline situation: who's to blame?

Gasoline I paid $1.226 for a litre of 87-octane gasoline yesterday. And I know it's only going to get worse. If we don't see $1.40 by the height of the summer, I'll be very surprised.

And yet, in response to the headline in my newspaper today -- GM will eliminate another shift at its truck plant, here in the town where I live -- there is shock and anger. That's understandable, because this will have an effect from the assembly line right down to the checkout clerk at the grocery store. But really, didn't anyone see this coming?

I wasn't old enough at the time to understand all of the complicated politics behind it, but I do remember the OPEC crisis of 1973. I recall seeing the news reports of the lineups, the alternate days, the stations out of gas. Back then, the Big Three were almost exclusively making large cars, and people laughed at those who bought the weird little Japanese cars. Once the crisis hit, they weren't laughing anymore, and that was the beginning of Japan's surge into the North American market. By the time the Big Three got into smaller cars, it was too late to push them back (and the fact that the cars Detroit built were crap didn't help, either).

But as we all know, history is in the past, and slowly, the cars got bigger again. This time around, though, both domestics and imports played the game. Each next-generation model was bigger, heavier and more powerful than the one it replaced, until the model got so bloated that it didn't fit into the segment anymore and the company had to introduce an all-new one to slot under it.

All of the automakers are hooked on the huge profits SUVs provide for them, and they've done a good job of convincing people they need them to be safe, be stylish, and be able to carry seven people (even though they probably never will). The buyer has lapped it up, and only now is realizing that not enough other people are buying small cars/taking transit/conserving energy so there will be enough left over to fuel the barges. And the automakers then justify it by saying that they're only giving the buyers what they want. Well, I want a panda-bear rug for my living room, too, but there's something about the "greater good" that prevents it.

Still, after having pointed fingers (and, in true North American style, not at myself), the question remains: can Detroit, and now Japan and Korea, react swiftly enough to this fuel crisis to bring appropriate cars to market in time? And when they do, and it all dies down, and everyone's in a smaller vehicle, will the next generations of those models stray from their diet, and start the cycle all over again?

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  • I didn’t grow up loving cars, but when the bug finally hit, it took me by storm. I make my living writing about them, and I spend much of my spare time playing with them.

    I’m a freelance writer and a member of the Automobile Journalists of Canada. My regular outlets include new-car reviews and special-interest articles for The Toronto Star (Wheels section); new-car reviews and news reports for Canadian Driver, where I’m also the Assistant Editor; articles on antique cars for Old Autos Newspaper; and articles in the industry trade magazine Tire News.

    But I’m more than just cars: I also write about food and drink, travel, pen collecting, celebrity interviews and pets, among others. My work has appeared in such publications as Harrowsmith Country Life, Pen World, Dogs In Canada, Where New Orleans, Rural Delivery and Writer’s Journal.

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