It seems like just a few weeks ago there was loud groaning about how high fuel prices had gotten and how there was no end in sight.  Everyone from the public to lawmakers to economists was worried and even panicking.

Here we are a few weeks later and the situation has been going the opposite way.  The predictions were that the price of fuel would continue to rise as economic woes continued to get worse.  While forecasters were fanning the flames of fear, economists and others started warning that the fuel crisis and the economic crisis are linked – not just locally – but also globally. 

The issue now is that with stocks tumbling, real estate and mortgages falling apart and banks having to be rescued on a daily basis, it is impossible for oil prices to be separated out of the mix.

In the past week alone, the cost of crude per barrel has fallen over $6.00, to under $87.00.  In a period when gasoline was up over $4 per gallon a month or so ago with dire predictions about $5, $6, or $7 per gallon or higher being tossed about, it has been interesting to see how fast the price per gallon has plummeted to below $3.50 per gallon, and even more interesting that the predictions are that the price per gallon of regular gasoline will be less than $3 by the end of the next 30 days.

Some of the forecasters that have long term foresight have been issuing strong warnings that as the stock market and the economy get worse; the price of gas would go down.  People would not be able to afford to purchase it at the high prices during a severe economic downturn.  When the stock market is as volatile as it has been recently dropping between 500 and 800 points in one session and affecting global markets, there are definitely economic repercussions.  Europe is experiencing worry, fear and panic by its citizens because of the far-reaching effects of the economic problems.

Some of the only folks who might be experiencing a little extra relief are the auto dealers who sell large cars and trucks – and who have plenty sitting around because fuel was too high for people to purchase – or those who own large cars or trucks and were really feeling the pinch at the pump more than those with economical cars.

We are not out of the woods yet, and the economic and fuel crisis is not as simple as it may seem.  For now, we may be getting a break on gasoline, but keep your eyes peeled – there is more to this roller coaster ride than meets the eye.

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.