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The purpose of this website is to provide consumers with information about existing and future options for paying for fuel to power their vehicles, homes and more.

While we do not endorse any of the products or alternative fuel sources featured on this site, we are open-minded and optimistic about the chances that one or more of these products and theories will eventually help eliminate our dependence on foreign oil, improve the environment and provide a cheaper alternative to existing fuel and energy power options.

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Archive for the ‘Gas Prices’ Category

Fuel Crisis Driving Airlines to Close

Saturday, September 6th, 2008

During the past year, fuel prices have shot up to hefty triple digits, making it impossible for many people to travel on vacations the way that they used to.  As a result, many are simply staying home. 

Add to this scenario the fact that jet fuel isn’t exactly inexpensive, so that puts the world’s airlines in a dilemma, as well.  They say they can’t lower ticket prices because they cant afford to.  However, because ticket prices are so high, travelers can’t afford to buy them.  As a result, airlines have been closing operations and many have gone out of business during the past year or two.  In fact, more airlines have gone out of business during the past year than after 9/11 when people were afraid to fly.

At least 26 airlines have gone out of business and nearly 200,000 jobs have been lost in the airline industry during the past year.  Airlines that had been hoping to hold on until fuel prices and other economic factors settled, could not hold on long enough and had to close their doors.

Some of the airlines are major international carriers, such as Alitalia, the Italian airline that has been a staple in travel to and from Italy for decades.  Part of the dichotomy is that travelers who could still afford to fly to their vacation destinations but cannot afford the fuel for a rental car to explore the destination once they arrive there.

There are ideas on the table about how to make things work and how to keep other airlines afloat.  Researchers are looking for ways to create biodiesel jet fuel and feel that it is a real possibility, but it will take time and money.

Meanwhile, the fuel situation in the world has forced us to look at the obvious problems and search for realistic solutions.  Researchers must look for alternative fuels, lawmakers must work with airlines, manufacturers and others to find ways to produce and distribute those fuels.  Individuals must do what they can to conserve.

It is important to note that when the world’s airlines are going out of business, this is no small crisis.  For now, if you want to fly on vacation, watch for specials, go on EBAY or one of the discount travel sites, find a good price, and go for it while you can!

Fuel Crisis Connects Us

Saturday, September 6th, 2008

There was a saying when I was in my teens that everything and everyone is connected in one way or another.  It was similar to “If a tree falls in the forest and nobody is there, does it still make a sound?”

There is no right or wrong answer to either question, however, everyone seems to have an opinion and a viewpoint of their own for each question.  As we look at the global economy, these questions come to mind. 

During the past few years, we have watched as oil prices have skyrocketed from double digits to over $4 per gallon in the U.S., and higher prices in other countries, with the forecast of prices going even higher before long.  As a result, we have seen a substantial rise in food prices, a decline in stocks, a large increase in layoffs and lost jobs and families losing their homes more than ever before in history.

These issues are so important that both the Democratic and the Republican National Conventions spoke about them in the past two weeks. 

Looking at the bleak situation, there are connections between many of the problems.  Let’s start with the fuel crisis.  The cost of fuel has become so high that many people are leaving their cars at home and opting to take the bus to work if there is a bus line available.  The problem is that many cities, including major cities such as Denver, are eliminating bus routes just when people need them most, because the cities can’t afford the gas to get to some areas.

The fuel crisis has affected manufacturing to the extent that many auto makers have laid of thousands of workers because the demand for luxurious gas guzzlers of a few years ago has evaporated.  There are talks of converting plants to start manufacturing hybrids and other fuel efficient cars, but that will take time, money and training.  Meanwhile, people are out of work.

Adding just one more thing, farmers and truckers are being hit hard, as well.  It takes fuel to plant and harvest crops and it takes fuel to transport them to the market place.  With costs going up, some trucking companies and farms have gone out of business while others are simply trying to hang on and wait it out.

There is no need to go into the rest of the story.  We all know what’s up.  What is important to think about is the answers to the questions at the beginning of this article.  If we are all connected – even by a small, thin thread – it is time to work together to find solutions to this crisis.  Even if we each do one tiny thing – recycle, conserve, carpool – it could add up to the difference between a trucker or farmer staying in business or having to close their doors.

Can New Motor Help Solve Fuel Crisis?

Friday, September 5th, 2008

With the fuel crisis looming large around the world, people everywhere are looking for answers and solutions.  Those of us who are not mechanically minded or do not have scientific backgrounds can simply do some research, do our part to conserve and hope that the folks who know how to make science work will be able to come up with viable solutions to the problem.

One man, a former Chrysler Canada employee in Windsor, Canada, has not waited.  He has taken his knowledge and put it to good use. 

The result is an electromagnetic piston motor that will eliminate dependence on oil and reduce greenhouse emissions at the same time.  Its inventor, Michael Axford says that there are no fuel tanks, fuel lines or exhaust systems in the vehicle, but all other parts of it are the same as in any other car.

Basically, there is a spool in the center of the cylinder head and it is wrapped with copper coils.  When the key is turned to start the engine the battery sends voltage to the coil which makes the coil electromagnetic.  As a result, instead of using spark plugs, the pistons are driven by the magnet.

Other cars that work along these same lines are being created by other companies and individuals, but Axford says that his is unique from the rest because his uses magnets of identical polarity and the force that they create is strong enough to drive the pistons through the cylinder to make the car run.

Currently, Axford has a Mexican patent on the car and a patent pending in Canada.  He says that magnets are strong enough to run cars, especially since they are used to pull trains, which are much heavier.  He plans to retro fit his motor to a Saturn and begin doing demonstrations to show what his engine can do.  He will be offering the engine to the three major auto manufacturers and, if accepted, will work on production deals with them.

There are some skeptics, but even they have said that the best way to find out if this will work is to finish building it and see what happens.

Fuel Crisis Hot Topic at Political Conventions

Friday, September 5th, 2008

Last week many of us watched the Democratic National Convention and this week the Republican National Convention, both to nominate their respective party’s candidate for President and Vice-President of the United States.

There were record numbers of people at the conventions and record numbers of people who watched on TV.  Lawmaker after lawmaker gave speeches about all of the issues that need to be addressed, changed, rearranged, fixed and overcome in this country and around the world – sooner rather than later.

One of the issues that was brought up time and again was the fuel crisis.  Though it is a bad situation, it is good news that the topic was noteworthy in speech after speech.  It means that at least there is acknowledgement of the problem even if there isn’t agreement by lawmakers for the solution. 

There are obviously a lot of ideas swirling around as to how to fix the problem.  One of the main ideas is that it is time to become less dependent upon – or independent of – foreign oil.  This is not a new idea.  We’ve been hearing it on and off since the fuel shortages of the 70’s and 80’s, but this is the first time in recent history that everyone agrees that this dependence must change somehow.

Science and research have brought us many new alternatives since the 1980’s and there is the opportunity in this current crisis to explore a variety of ways to hit the fuel crisis head on, long term and once and for all.

In watching the conventions it was obvious that this issue was vital and that with some forethought, direction and actual study and communication across party lines, across ideologies, across education and background, there is enough fuel and energy from enough sources to make sure that it is used wisely and distributed so that everyone has what they need.

There are far-reaching implications to using some of the various sources of fuel that were mentioned including solar energy, wind energy, plant energy, nuclear energy, coal, oil and more.  With the right balance, not only could the fuel crisis be solved once and for all, but it might just help the environment as well.

Now that we have the attention of lawmakers who were willing to speak about the issue on international TV, that is a start.  It’s time for them to move forward and start really speaking to the experts and to each other and come up with a workable solution.

Is Compressed Natural Gas a Good Fuel Alternative?

Thursday, August 28th, 2008

This is a good question that has been asked in the 80’s during the last major fuel crisis, and is being asked in some places in the country now, during the current fuel crisis.  So what ever happened to the movement toward CNG as a good alternative to the usual gasoline?

Another good question.  During the 80’s, CNG was an idea whose time had come.  It began being used in many municipalities throughout the country to power mass transit vehicles, such as buses, as well as government employee vehicles and vehicles for many organizations throughout the country. 

At that time there was a push toward using CNG and there were fuel stations that began carrying CNG.  Automakers were beginning to create the double tanks needed to carry enough fuel to help cars travel long enough distances to make it worth their while. 

Once the fuel crisis of the 80’s ended and the hysteria died down, so did the interest in building the CNG supply.   Where there were once ideas regarding how to create more filling stations and how to make it feasible for even private individuals to have CNG tanks, there was simply no activity.  It was as though this was just forgotten.

Some municipalities continued to use CNG and still use it today for many of their vehicles.  Some continued to quietly develop CNG and look for the ways and means of distributing and using it.  As a result, there is still an interest in CNG as an alternative fuel.

With fuel prices topping $4 per gallon, which is much higher than it cost during the 1980’s and much higher than the $1.50 per gallon for CNG, interest is building continually.  Many of the ideas and plans being put forth for alternative fuels today include CNG.  It is readily available.  It burns clean.  It is cost effective.  It diminishes foreign oil dependence.  It eliminates the need for at least a portion of fossil fuels.

With all of these positives, even with the obstacles, CNG may be worth a second look.

Natural Gas Alternatives from Waste Coal

Thursday, August 28th, 2008

They say that necessity is the mother of invention, and many inventions have resulted out of necessity.  As the fuel crisis has become more expensive and more frustrating that is what has happened.

There has been extensive research into coal as an alternative to various fuel sources.  Coal can be treated in various ways, including liquefaction,  to create different types of fuel.

Recently, there have been developments involving waste coal that will factor into the fuel crisis and the search for alternative sources of fuel, especially in an effort to replace natural gas. 

To determine the feasibility of creating an alternative fuel from waste coal, two companies have joined forces to research the possibilities.  One company, Synthesis Energy Systems, builds gasification plants and the other, is the largest producer of coal in the United States.

Together they will use coal that would otherwise end up in landfills to produce methanol, ethanol, mixed alcohol, ammonia and SNG.  The gasification process used, called “U-Gas” would create fuel alternatives and alternatives to higher priced natural gas without creating emissions and pollution that other processes create.

The U-Gas system is normally used to create synthesis gas, also called syngas.  Syngas is a mixture of carbon monoxide, carbon dioxide and hydrogen, and has half the density of natural gas.  Since it is made with waste coal an has little or no emissions, it creates a win-win situation for the environment.

The processes being used for this venture have been under development for nearly thirty years, however, the benefit will be that instead of ending up in landfills, 20 million tons of waste coal might now be able to be turned into usable, affordable fuel, helping the economy, the environment and the fuel crisis all at the same time.

Developing Energy from All Viable Sources

Thursday, August 28th, 2008

No matter where we live or what our background or situation is, the fuel crisis affects us.  Unless we are counted among that small percentage of people or families that makes a ton of money, we can literally feel the effects of the fuel crisis at the gas pump.  Studies show that these days, even the uber-rich are feeling some of the pinch.

If we are not feeling the pinch because we have oh so much disposable income, perhaps we are feeling the need to make sure that global warming and other issues that are harmful to our environment and our planet do not increase.  Or, it might just be a matter of not being dependent on foreign oil in order for this country to function properly.

Regardless of our reasons, most of us – including the government – are looking for alternatives to fossil fuels.  There are a number of them out there – more than meets the eye.  Many of them are in various stages of research and development and others are close to being ready for use or are already being used.

Much of the current research available suggests that a combination approach is necessary to dig out of the current fuel crisis and create an independence when it comes to producing and sustaining fuel.  There are many sources that are being investigated for various reasons including environment, availability, efficiency or cost effectiveness.

Drilling for oil is one part of the equation.  America has numerous sources of oil, both offshore and in various areas on the mainland.  In addition, there is plenty of coal.  In fact, the U.S. has over 25% of the world’s coal reserves and these could be used for fuel, especially through coal liquefaction, which creates synthetic fuel that can be used the same as gasoline made from crude oil.  This is not to say that these are the only answers.  There are finite amounts of coal available, and if we are trying to eliminate certain types of pollution, it is essential that we limit  and balance the amounts of certain fuels.

In addition to coal and oil, solar and wind power are available, but need to be developed further to be viable sources of energy.  Nuclear power is another source of sustainable energy, and the country has the capability to expand nuclear energy.  Bio fuels are also a good alternative to oil, and there are various types that can be grown and generated right here in this country.  Also, automakers can work to create more solar powered cars, hydrogen powered cars and battery powered cars.

With lawmakers and researchers working on all of these sources at the same time, there should be developments that will sustain us far into the future.  If these alternative choices were made available, there would be enough fuel to go around and people could chose what is right for their situation.  For now, we must wait for developments while encouraging researchers, scientists, inventors, farmers, lawmakers and others to keep working to develop as many alternative fuel sources as possible.

Converting Automaking Factories

Thursday, August 28th, 2008

One of the signs that things have changed with relation to fuel and fuel prices is the fact that fuel-guzzling vehicles are no longer in demand.  In fact, in many cases, because of huge fuel price increases, it is hard, if not impossible, to even give them away. 

SUV’s and large trucks that do not get good mileage were status symbols not long ago.  Within the past year as fuel prices have continued to rise, prices for these vehicles have continued to drop.  Vehicles that cost $20,000 to $40,000  less than a year ago are being sold – or as some people say, given away – for well under $10,000. 

These are signs that things have changed and are continuing to change when it comes to the way we view transportation and fuel.  Not only are individuals, families and consumers realizing this, but so are car companies that have been producing those large and inefficient vehicles.

As a result, auto makers are changing the way they do business and changing their factories to match.  They are making adjustments to coincide with the adjustments that have taken place in the vehicle market due to the fuel crisis.

Ford Motor Company, for example, has begun to change many of its truck factories and adapt them so that they will be able to produce smaller, fuel efficient vehicles, such as the Ford Focus.  The factories will be retooled and this retooling will begin in November. 

These adjustments are important because they are intelligent.  This retooling will cost million of dollars, but save thousands of jobs.  It will help the economy by providing a product that people need and a product that will conserve fuel and energy and ultimately help the environment.

Other auto makers are looking at following Ford’s example in similar ways.  This makes sense for them financially – why keep producing products that won’t sell when you can produce more products that you already produce that you know will sell?  In addition to making financial sense for the auto makers, there will be benefits to the country and its citizens as we have already discussed.

So, one more sign that it is time to deal with the fuel crisis head on is the fact that politicians are talking about it and industry – including automakers – is actually doing something about it. 

With some concerted effort, there can be progress, and with progress, we just might get through this crisis and change the way we look at and use fuel forever.

 

Alternative Fuel for the Airlines?

Thursday, August 28th, 2008

Even though prices for fuel have gone down a bit during the past few weeks, the fuel crisis is still alive and well.  After all, we are still looking for alternative fuel sources as well as taking less vacations and trying to conserve on our driving. 

There are huge issues as far as the airlines are concerned, as well.  After all, the gas tanks on airplanes are so much larger than the ones on our cars. 

We are looking at alternatives for fuel everywhere.  Plants are being seriously considered.  Vegetable oils, steam and other substances are being tested, tried, experimented with and looked at closely to try to end dependence on fossil fuels. 

Biodiesel and other eco friendly, sustainable and renewable fuels are being looked at closely as alternatives to the fuels that we have relied on through the end of the 20th century.  As we move further into the 21st century, we are moving forward toward alternatives that will do a better job for all of us in the future.

The airline industry is pursuing alternative fuels that can be created at home rather than being purchased abroad.  Ongoing studies have yielded ideas for these alternatives, but most of them are still being developed.  Unfortunately, it is essential to find alternatives that will work now. 

Jet engines run on kerosene but can be retrofitted to run on other fuels, such as hydrogen.  There is a logistical problem with this, however, in that in order for jets to run on hydrogen, they would have to be fitted with massive tanks for the fuel.  In today’s economy, that might be an overwhelming financial issue.

There are synthetic fuels available, notably from South Africa, using coal as a base.  Because these synthetic fuels are blends and work like actual jet fuel, planes will not have to be redesigned to use this fuel source.  Numerous American companies are now creating these fuels and will be able to provide millions of gallons in the near future.  Another biofuel made from tree oil will be tested this spring b several of the major air carriers.  In addition, algae-based fuel is being developed.

It may take some time for these developments to be available on a wide scale, however there are alternatives for the airlines.  Maybe vacations are not a thing of the past after all.

 

U.S. Should Check India’s Energy Crisis

Thursday, August 21st, 2008

If the United States wants to see what could happen in the midst of an energy crisis, it should look at India’s current situation.  The U.S. has known for a long time that it should conserve energy and broaden the ways it develops energy, as well as becoming less dependent on fossil fuels.  Things have gotten to the point where they are out of control, and fuel issues are affecting the entire world.

Right now, the United States is dealing with the pressures of depending on foreign fossil fuels.  There is the short supply and the expense, to begin with.  Then there are the issues of developing other forms of fuel and energy.

India is dealing with some very intense energy and fuel issues that the U.S. should stay very aware of.  Basically, the situation is that India has had a very unstable supply of electric energy as well as an energy shortage.  As a result, small businesses and houses are purchasing supplies of diesel fuel to run generators in order to keep their businesses open.

The demand for diesel has gone up 40%, and according to reports, oil companies are REFUSING to meet this demand.  Many businesses simply can’t operate under the tremendous strain.  Without diesel, fishing boats cannot operate, farmers cannot get their goods to market, and truck drivers cannot travel long distances.  In instances where there is diesel fuel available in one area, there may be no fuel available in another, therefore, some truck drivers and farmers are not able to get their goods to market because there is no assurance that they will be able to purchase the diesel fuel to return home. 

So, in one area, food and other commodities are piling up waiting for the fuel to be able to take them to market while in another area, people cannot get the food and commodities they need.  One fisherman said that his family would go bankrupt waiting to try to sell the fish, especially if they went bad and had to be thrown out or given away.  At the other end, he said that family members who were to receive some of the fish that he can’t deliver will go hungry.

As we keep hearing lately and have been hearing for decades, everything is dependent on other things.  Energy and energy sources are not stand-alone issues.  To see how interconnected they are, one only look at what India is going through.  Hopefully that will motivate lawmakers and others to HURRY up and find a short-term and long-term solution.

Diesel Powered Cars Are Back in Style Again

Thursday, August 21st, 2008

Those of us who were here for the huge fuel crisis in the 1970’s probably remember the fact that cars that ran on diesel fuel were part of the suggested solution to the problem.  On top of that, the cost of diesel fuel was a good deal less than the cost of leaded and unleaded fuel. 

In the 70’s and early 80’s 2/3’s of the Mercedes in the United States were diesels.  In addition, Volkswagen, Audi and other companies had diesels available here and even General Motors jumped – erroneously – on the diesel bandwagon.

Two of my friends bought Cadillacs that ran on diesel fuel.  Let’s just say that though the fuel was a lot less costly than the problems and the repairs.  Just because a car that runs on gas is “converted” to be able to run on diesel fuel does not mean it was meant to do so and does not mean that it does it well.  My two friends had a number of repairs that they paid for out of their pockets until the motors basically fell apart and had to be replaced by Cadillac.  The replacement was paid for by General Motors, who also reimbursed my friends for the other costs that they had previously paid for.  They kept the cars as long as they could, but got rid of them before the warranties expired.  They both bought Mercedes 300D turbo diesels and drove them for around 200,000 miles with no problems.

Now that we are in the midst of another fuel crisis, there is a new crop of diesels headed for the marketplace.  There is a difference in the diesel of the 21st century.  The gas mileage is better than before, the engines are smoother, the cars more luxurious and there have been other improvements.

The downside is that diesel fuel costs more than regular gasoline, which is the opposite of the situation in the 70’s and 80’s.  Proportionately, the cost of the vehicles is higher, as well.  This means that if you plan to keep the car for the long term – especially since diesels can easily run for 200,000 to 300,000 miles or more – it could well be worth the investment to purchase a diesel run car.

They say that every 20 years or so certain things come back into style.  The latest diesel cars are back, and not only are they stylish, they just might help with your personal fuel situation in the long run.

Pakistan Looks to Plants to Ease Fuel Crisis

Thursday, August 21st, 2008

Pakistan is yet another country that has been hit by the fuel crisis.  It is somewhat ironic since they are located in the midst of the richest oilfields in the world.

Even with their proximity to oil, the country is looking to alternative fuel in the form of bio- diesel and bio fuels to help them in many areas.  The results of starting a bio-diesel program would be a positive use of marginal land, work for more farmers, reduced pollution, an extra source of renewable energy, and a more eco friendly country.

The bio-diesel can be obtained from chemically converting non-edible oils from plants and turning it into balanced, organic fertilizers that are rich in nitrogen and have less negative effect on the soil.  These plants can be planted and grown on marginal land that can be cultivated with saline and waste water.

In addition to all of these positive effects, one of the best effects would be the positive effect on the economy.  Since over 60% of all of Pakistan’s land lies barren, the potential for growing these crops is tremendous.  In other countries it might be too difficult and costly to undertake a change like this, but because of Pakistan’s land situation, the costs would not be as great in Pakistan.

There are about 100 million barren acres of land in Pakistan that are available to be planted and by using non-edible plants the costs will be low and price hikes for products yielded from the program should be negligible, or there could possibly be no price increases at all in the marketplace.

Pakistan State Oil has already begun planting non-edible plants on parts of the 100 million acres.  The bio-diesel can be used for buses, wagons and trains, reducing harmful emissions that lead to serious pollution.  Additionally, like every other oil-dependent country that imports much of their oil, by fully implementing the program, Pakistan will not have to depend on imported oil for as much of its fuel.

We should all look to Pakistan to see what the outcome is and how it could help the fuel situation in our own country.

Emergency Plans for Heat Crisis this Winter

Thursday, August 21st, 2008

When fuel prices began to rise, most people didn’t really notice.  When they finally did notice that the prices were continuing to rise and not coming down, they thought that there would be a solution before things got too bad.  When they started getting bad, folks hoped they would not get out of control, but they didn’t start to panic.

Well, things are as close as they can be to being out of control, and though people are not totally panicking, they are fearful and worried.  One of the areas of the country that is extremely worried is the East Coast, as well as other areas of the country that rely on fuel to provide heat in the freezing cold of winter.

In an effort to deal with these worries, local, county and state officials gathered with the United Way in Bath, Maine to determine emergency plans for the cold weather of winter in advance.  The Governor’s office, along with other offices, officials and organizations, described the programs that are available or will be available to homes during the coming winter, and any other emergency provisions are being considered. 

One of the most important issues that the gathering was trying to deal with the process of identifying individuals and households that will need extra assistance because they have extremely low income.  Not only is it important to find these households to get them assistance, but also to provide them with any information available regarding programs that are available to help them in addition to energy assistance.

The fact that officials on the East Coast are working to procure assistance for people months in advance of the winter/snow is heartening.  After all, there are things that individuals can do to winterize and weatherize their homes while the weather is still good.  Working on these issues in advance also gives people plenty of time to be able to do any work necessary to prepare.

Hopefully, wherever you live, if there are extremely cold winters, the same types of information, assistance and preparation will be available.  If you need information contact your local energy or utilities office well in advance of the onset of cold weather.

Carnival Cutbacks and the Fuel Crisis

Thursday, August 21st, 2008

There are a million things one might think of when they think of the fuel crisis.  Many of us think of higher prices for travel, higher prices for food, a four day work or school week with added hours each day, bills that are harder to pay, and other results of the issues we are having with fuel.

One thing that we might not have thought about – and I certainly have not, until now – is traveling carnivals.  Yes, these carnivals are being hit pretty hard because traveling carnivals need fuel for most of what they do.  Fuel is, of course absolutely necessary for the carnivals to actually travel.  A lot of fuel.  Many of the traveling carnivals drive by trucks that use diesel fuel – which has become very pricey lately. 

Traveling across regions, states and even the country, is expensive even without the fuel crisis to deal with.  Consider, though, the fact that food, lodging, fuel for rides and other costs have gone up accordingly. 

This has become enough of a problem for some carnivals to reduce the amounts of miles they have to travel.  They have cut out some of the cities they visit and they have decided to stay within smaller areas to contain costs.  They have also cut some of the rides they offer in an effort to save fuel and money.

This may seem like a frivolous issue when compared to the fuel crisis itself, issues with the economy, wars, politics and other problems, but it is not.  It shows that some of the things that we take for granted have been affected by high prices for fuel.  When we are at the point where the neighborhood carnival – a tradition that has rolled into towns across the country for decades – is diminishing, it is time to take note and try harder to fix some of the problems. 

If not, what’s next?  Will we end up losing the ice cream man, too?

Could Fuel Costs Hurt the Country’s Roads?

Friday, August 15th, 2008

The fact that the cost of fuel has skyrocketed has been a tremendous problem for consumers, making everything – especially travel – more expensive.  It has become too expensive for many, and as a result, less people have been traveling this summer.  In fact, in June, alone, travel dropped nearly 5% from last years amount of miles traveled, in what is usually a busy travel month with kids out of school.

We continue to hear about new and amazing effects of the fuel crisis, and the latest effect is the potentially negative effect on the roads themselves.  How could less travel have a negative effect on the roads?  In a not so obvious way.

The tax on fuel contributes to the nation’s highway fund.  As consumers buy less fuel, there is less money from taxes to contribute to the Highway Trust Fund.  Taxes on all types of fuel are contributed to this fund.

A major source of funding for infrastructure, repairs and other necessities on the roads and for the roads, is that very fund, and the less consumption of fuel actually will create more issues that could plague our nation’s roadways.

There have been calls for making repair and maintenance of the roads less dependent on fuel taxes.  This is not necessarily a simple idea.  There are many ideas swirling around including creating a Metropolitan Investment Fund to reward cities that improve traffic and deal with other issues related to congestion.

Other ideas include a National Infrastructure Bank that would work like the Federal Deposit Insurance Corporation (FDIC) and fund civic building projects for everything from bridges to sewers and more.  The funding would come from bonds, and the agency would be nonpartisan.

This is a complicated issue that needs to be addressed.  It is good that lawmakers are making a concerted effort to deal with the effects that the fuel crisis has created – even the ones that are not that obvious.

 

Gates Helps those Hurt Most by Fuel Crisi

Friday, August 15th, 2008

As with most economic woes around the world today, the fuel crisis has affected those who are most vulnerable.  It makes sense that individuals with the most income and savings are able to afford more than individuals without those assets.  That is not to say that the well off do not experience any issues due to economic problems, but they are in a much better position to absorb the losses than the average person making just above minimum wage.

Bill Gates understands how these things work, and he understands the concept of helping those who need it most.  Aside from being a gabillionaire, he is a philanthropist and a humanitarian who is using his money for good.

The Bill and Melinda Gates Foundation announced today that they are providing $17.6 million in grants to help the hungriest people around the world, as well as nursing mothers and small farmers who have been hurt by the fuel crisis.  Many of the individuals who will be helped are people who have lost their jobs due to the fuel crisis, and others simply cannot afford the skyrocketing prices of food.

According to the United Nations over 950 million people worldwide are at risk of hunger and malnutrition.  This is especially true of young children and nursing mothers.

In addition, costs of fertilizer and fuel have hampered small farmers’ efforts to grow food.  Some of these farmers are losing their farms, others cannot afford to grow and sell food at market prices because of the high costs involved in growing and developing it.  The grants will help supply everything from seeds to soil to farm management and market access, helping the farmers to have a more even playing field in the world market and to be able to sustain their farms.

Until the fuel crisis developed to this point, many around the world have not truly paid attention to the side effects of not having affordable fuel or enough fuel.  It is important that we all pay attention to this issue, as it effects everyone from the largest farmer to the smallest consumer.

We Can Learn from Other Countries

Friday, August 15th, 2008

Here in the United States, even though we are coping with fuel costs that are too high, we are somehow muddling through.  The costs are ridiculous, and they are having a disruptive effect on many families, some who cannot afford the gas to get to work and are worried about how to heat their homes this coming winter.

The fuel crisis here is also affecting municipal transit, especially bus lines in various cities.  Some bus lines are being curtailed or eliminated because fuel costs are too high.  The irony is that this is happening just as more people need to commute on mass transit because they can’t afford the price of fuel for their vehicles.

It is important for lawmakers and concerned citizens to continue looking for answers in this crisis before the situation here becomes as critical as it is in other countries around the world. 

It has been reported that in some countries essential services such as ambulance and police have been cut back due to fuel shortages and fuel prices.  In addition, people cannot afford the high cost of food because of the high cost of fuel.  In addition, farmers hare finding it difficult, if not impossible, to grow their crops because they can’t afford fertilizer nor can they afford fuel for their equipment.

The United States is experiencing great difficulties due to the expense of fuel, however, they are still doing much better than many other countries in the world.  It is essential that lawmakers, oil companies, energy companies, inventors, carmakers, scientists and others who can help, get together and come up with a solution to the crisis before the economy of the U.S. is as bad as it is in other places in the world.

 

Could Lower Fuel Prices Cause Shortages?

Friday, August 15th, 2008

Good news!  The cost of fuel has dropped during the past two weeks, and it is predicted that this trend will continue, at least in the short term.  This is great news for consumers, or is it?

Some economists are predicting that because of the drop in prices, there could end up being fuel shortages for short periods of time if the prices continue to fall.  The way that this would happen is that fuel retailers would maintain lower amounts of fuel stock waiting for prices per barrel to continue falling, rather than buying at the current price and having to sell the fuel at lower prices at the pump when the current price per barrel continues to fall.

In the meantime, there is a second half of this bizarre situation, which makes some sense from a business point of view.  The second half of the scenario is consumers.

As consumers see the prices fall, they will wait until the last minute to purchase fuel, and then fill up at the lowest price possible.  If the price drops significantly, consumers will possibly be in a rush to purchase while prices are down, creating the need for more fuel.  With fuel companies keeping their stock low and trying to buy in bulk at the lowest price possible so they can sell at a profit, and at the same time, consumers trying to purchase as much fuel as possible at the lowest current price, there could be a shortage created.

Economists feel that the shortages would be a day or two at a time and would not necessarily become a long-term situation, however, it could still lead to a lot of concern and possible chaos for both consumers and fuel retailers.

Even with the drop in prices, however, fuel will still remain expensive to purchase.  In addition, economists advise that to avoid a shortage in your personal situation, it might be good to spend the extra 2 cents per gallon and fill up your tank, not waiting for rock bottom prices to see what happens.

Fuel Cost is Down, but Don’t Relax Yet

Friday, August 15th, 2008

During the past couple of weeks, the soaring cost of fuel has gone down a bit from an average of around $4.50 per gallon to a little over or under $4.00 per gallon, depending upon where you live. 

Every little bit helps, so we are not complaining about the savings we are seeing lately.  However, there are predictions that fuel prices will begin to climb again, and that this climb may be steeper than the last.

This is a difficult situation to fathom.  When prices went near $3 per gallon, people were stunned, and when they went above $3 it really started to hurt consumers.  Now that we have been over $4 per gallon, it has not only hurt consumers at the pump, but created an economic mess in the United States and other countries, as well. 

The cost of fuel has affected the cost of food, clothing, air travel and just about everything else we can think of.  It has become overwhelming for many, and there is already great concern about what various areas will do about heat this winter, and what farmers will do to be able to afford fertilizer for their crops.

If this isn’t bad enough, there are news articles and reports coming out of everywhere stating that gas prices will continue to rise and could get to as high as $7 or $8 in the United States and $11 or $12 in Europe by early 2009. 

There is no way of knowing if these reports are based on anything but fear, however, it is certainly possible that fuel prices will continue to rise until a solution to the crisis is found.  The technology is available for creating and using alternative fuels, as well as creating other fuel and energy sources.  In addition, the idea of more drilling has been tossed about a lot lately. 

Regardless of what method or methods are used to deal with the fuel crisis, it is likely that prices will waver up and down until they finally level off, hopefully at a number that we can all find a way to live with somehow. 

In the meantime, lawmakers will keep going back and forth about the appropriate solution, and we will be keeping our eyes on the pump and watching how much we drive. 
 

Denver Buses Hit Hard by Fuel Crisis

Friday, August 8th, 2008

Perched in the Rockies, Denver has grown from a small town to a bustling city.  It has become one of the cities that tourists visit in Colorado  in part due to its proximity to Denver International Airport, and in part, due to the fact that it has kept many aspects of its small town charm even as it has grown. 

Even with these attributes, Denver, just like other cities across the United States, is not immune to the effects of the fuel crisis.  Just like other cities who are struggling with the balance between paying for fuel and eliminating mass transit services, Denver is dealing with the same issues.

Denver has become a commuter city, where people from the mountain communities that surround it drive or take the bus into the city for work and other reasons.  The paradox right now – just as in other areas across the country – is that as people are using mass transit more and bus ridership has gone up, rising fuel prices make it nearly impossible for the system to keep up.

The result: some of the routes that are needed the most are in jeopardy of being cancelled.  On bus line that has been in peril has been the commuter line from Park County into Denver.  The commuters that use this line live in mountain communities and have no other means of transportation into the city.  The route runs along highway 285 and is a lifeline for the people who use it.

Because of the fuel prices – even though ridership has surged – the route was scheduled to be terminated, which left its commuters in an uproar and left them in a situation where they would be stranded.  They had to beg the transit officials to keep the route going, which, at this time, it still is. 

The Denver Transit System will be $6 million over budget this year due to fuel alone.  They are budgeted for $2.60 per gallon but having to pay $3.20.  With 100 million passengers last year and estimates for more this year, the price of fuel to get them where they need to go in the eight counties that are served, could be staggering. 

For now, the route on 285 is safe.  Officials are looking at various ways to help fund the deficit including surcharges to cover fuel costs.  This scenario is being played out in communities throughout the country with little or no help.

It is time that lawmakers take some of the good ideas that have been heralded for year and put them into practice.  Even one small community on a mountaintop in Colorado can effect the economy.  The country needs to work together to overcome the fuel crisis so the economy in big cities or small towns can work.

 

How Did We Get to This Point?

Tuesday, August 5th, 2008

Here we are in the 21st century with inventions that boggle the mind.  In addition to computers that are outdated in a nanosecond, we have been offered – and some people have already put deposits down for – the first commercial trip to the moon.

All of this and we are unable to deal with the fuel crisis.  It is interesting that the fuel crisis is not a new idea or situation that just landed on the horizon.  As far back as the late 70’s we were being warned that this time would come, and it would happen sooner than we think and affect us much worse than we thought it would.  Those who predicted this were right on the money, no pun intended.

In around 1979, Jimmy Carter, who was president at the time, stated that there should be alternative energy, such as solar power.  He even went so far as to have solar panels installed at the White House.  No word on whether they are still there or still in use, but it seems that he may have been a visionary who was ignored, as many visionaries are.

Carter had a few other ideas, too, such as pushing automakers to increase the mileage to somewhere around 48mpg by 1995.  Well, a few of the hybrids, like the Prius that has been out a couple of years now, boast 50mpg.  Carter suggested offering windfall taxes to oil companies so that they could look for alternative fuel and energy sources.  He also felt that at least 20% of our energy should come from alternative sources – especially solar power – as soon as possible.

Here we are 30 years later listening to the very same arguments by lawmakers while the price of gas has gone up from under $.50 per gallon to over $4.00, partially due to inaction on some of the logical alternatives to dependence on fossil fuels.  Then again, there is also the fact that for years, America has been far behind the curve in manufacturing cars that perform like those that have been manufactured in Japan.  Only recently have U.S. automakers been catching up.  And only recently – with an election looming and with gasoline prices that have skyrocketed – have lawmakers across the aisles been actually seriously talking, and some of them have stopped arguing long enough to actually communicate about getting things under control.

The worst of the issue is that we could have avoided getting to this point to begin with, so getting things under control now will not be quick or easy.  It’s like trying to keep ice from melting after it has sitting on the counter for an hour or two.  It can be done, but it has to go back into the freezer. 

The fuel crisis can be remedied, but it will take going back to some of the ideas that have already been proposed and actually implementing them and adding to them to get started.  It’s good to know that at least part of Congress is finally talking together and working together to move forward and get things done before it’s really, really too late.  Hopefully, the rest of Congress will stop arguing and join in solving the problem.

Is There Finally Progress in Congress?

Tuesday, August 5th, 2008

It’s no secret that the fuel crisis is out of control and it is hurting people from one end of the country to the other.  Whether you are a farmer, a secretary, a city worker or an executive, paying $4 or more for gasoline hurts the budget, the wallet and people’s everyday lives. 

Some workers are opting for lower paying jobs closer to home because they can’t afford to pay for the gas.  Because other companies are struggling financially, other workers are being laid off.  There is not enough money to pay for their wages and for the cost of fuel to keep business going.

The country has been speaking out, crying out and begging Congress to come up with some sort of assistance.  People are looking for and hoping for a plan that will at least begin to address the fuel and energy issues for the short and long term, and begin to bring some relief.

It is possible that his is finally happening.  Senator Lindsay Graham of South Carolina has co-sponsored a bill that may address some of these issues.  This is a bipartisan issue and a bipartisan bill that both sides of the aisle seem to be taking note of and taking a positive view toward.  In fact, both John McCain and Barak Obama, senators running for president who rarely agree on anything these days, agree that this is a good start and could begin to energize lawmakers in an effort to actually start solving the fuel and energy crisis in this country sooner rather than later.

We have been warned for over a decade that by this point in time the U.S. would be dependent on foreign oil if it did not develop alternatives, but the warning was not heeded as a serious issue soon enough.  In 2006, when gas prices were around $2.50 per gallon, they cry for a change was raised with little or no assistance from Congress.  As a result, the country gets nearly 70% of its oil from foreign countries.  Thus, the crisis we face now.  Instead of being ahead of the curve and developing alternatives, gradually using less foreign oil over the past 15 to 20 years, we have done the opposite, and now have to rush to come up with plans to turn the situation around.

The new plan, backed by 10 senators from both parties, features money to U.S. automakers for creating fuel efficient/alternative energy cars, tax credits to individuals who purchase those cars and other measures, including incentives for offshore drilling. 

There are no guarantees, but at least Congress is hearing the voice of the American people who have been trying to get their attention regarding this matter.  Hopefully more lawmakers from both sides of the aisle will agree to communicate in a positive way and finish creating this plan and making it comprehensive enough to truly to help citizens who are being hurt in many ways on many levels by this fuel crisis that could have been avoided in the first place.

Fuel Crisis Could Hit California Hard

Tuesday, August 5th, 2008

The state of California produces the lion’s share of agriculture for the nation.  That has always been a positive thing for the country and for the state.  With the state of the economy and the issue of the fuel crisis as overwhelming as it has become, the fact that California is in the agricultural situation that it is can be more of a negative than the positive it used to be. 

The reason: fuel.  Agriculture alone uses a lot of fuel that, on the surface, we don’t think about, and, often, neither do politicians or farmers.  For instance, in addition to some of the fossil fuels that are used in agriculture – aside from those used in trucking and transporting products to market and aside from equipment used on the land itself – there are other, more subtle uses.

Asphalt for roads uses fuel.  Plastic used in many types of containers use fuel.  Pesticides and other fertilizers use fuel.  When you produce as much agriculture as the state of California does, these things add up to a lot of fuel.

California is in a good situation on one hand because they have 206 oil fields.  On the other hand, California uses about 20 billion gallons of fuel just to be able to drive.  This is a lot of fuel. 

Even though the nation and most states do not have a comprehensive energy plan or energy conservation plan, the need is there.  Politicians – especially the two presidential candidates – are talking about this issue on a daily basis.  CNN and MSNBC along with all the other news channels have program after program about what to do about this crisis.

Some cities in California are not just waiting around for the federal or state government to come up with a plan.  Cities such as Oakland and San Francisco are working on alternative energy in areas such as their mass transit.  Hopefully other cities and counties across the country will follow suit.

The fuel crisis is a problem throughout the world, not just in California, however, since California produces nearly half the fruits and vegetables in the United States, it is critical for them to be able to be sure that they can continue to do so.

But California is not alone.  The country is in need of alternatives, and we are hearing from people like Richard Branson and T. Boone Pickens, among others, with ideas that could help get the fuel crisis under control in the short term and the long run.  California is in a tough situation, and their situation will effect the country and essentially, the world.  It is a good thing that they are taking the lead and taking responsibility to start looking at conservation and alternatives on their own without waiting for the problem to get any worse or the government to help.

Is Nuclear Energy Part of the Solution?

Tuesday, August 5th, 2008

For decades there has been an ongoing debate as to whether nuclear energy is a viable alternative to other forms of energy.  With the advent of nuclear power plants came concerns – some justifiable – about accidents and other issues that could harm people and the environment, especially those near the power plants themselves.

Then there were accidents in places around the globe – including the United States – and the fear that came along with the accidents, as well as the myths that were perpetrated as a result.

As our fuel and energy sources have waxed and waned over the years the debate about nuclear power has continued.  With the fuel crisis in full bore, we are hearing more and more about alternative forms of energy these days.

Natural gas has been touted as one form of energy that can be used to replace oil that is so scarce and so expensive.  The problem with that is that the United States gathers much of its natural gas from Canada, and Canada has put the U.S. on notice that there is little natural gas that they can spare due to having to tap into their own reserves to keep their industries moving forward.  In addition,
there have also been huge price hikes in the cost of natural gas, making it ineffective to use in many businesses.

Natural gas has been used to replace electricity but this drove the prices up and has caused over a million jobs to be cut in order to keep up.  The cost of natural gas has risen 93% just since last August.  In addition, natural gas is a finite resource.  North America – particularly the United States – has not been increasing its natural gas production, and with Canada having said that it cannot spare much, if any, of its natural gas, the United States needs to come up with a new commodity – fast.

This is where nuclear energy may or may not come in.  Researchers suggest that nuclear energy would be a good source of energy for electricity, while using other types of energy for other needs.  There is debate about how this would work and whether this would work.

Regardless of what the result may be, it is clear that we need to look into all types of energy – including nuclear energy – in trying to address and solve the fuel and energy crisis before it is too late.

Fishing and The Fuel Crisis

Thursday, July 31st, 2008

When we think of the fuel crisis most of us think of our own commute to work or to the grocery store or to pick up the kids from school.  We might think of some of the trucks that we see on the highways, or, when we see the prices rising at the market we remember that the trucks that are transporting our milk, bread, meat and vegetables – and everything in between – are paying a heavy price to stay in business, in fact, in the first quarter of 2008 alone, over 1,000 trucking companies went out of business.

One of the areas we don’t seem to think of much is that of fishing.  If you have noticed that the price of fish at your local market has gone up considerably, it is because of the same fuel crisis that the truckers, their families and our families are experiencing. 

Fishing boats use diesel fuel, which used to be the least expensive of the major fuels, but now is one of the most expensive.  The fishing boats that had to pull in 50 fish to break even, now have to pull in 70 or 75, making it much more expensive for them to do their work.  Fish that cost $2 or $3 per pound a year or two ago cost twice that now.

Some fishing crews in other countries have reported using smaller boats, often without using motors, in an effort to save money because there is little or no fuel involved.  Fishing crews are doing all they can to try to survive – making a profit is not even a possibility in many cases.  In fact, some smaller fishing businesses are reportedly only able to afford to catch enough to sell a very minimal amount of fish locally and save the rest to feed their families.

When dealing with the fuel crisis in our own businesses and families, it is important to note that none of us except perhaps the super-rich is immune to the far-reaching effects.  Only time will tell how this crisis will be harnessed and if we will move beyond it into a better economy.