Could it be that Americans are finally warming up to the idea that life doesn’t revolve around how good your car looks and that putting food on the table is more important than driving an SUV? I mean really, it’s about time, no? The pundits have been saying it for the past year, but it looks like the prediction that the average American would rather eat than spend money on fuel is finally coming true. Not only that, it’s coming in droves.
The increase to the estimated $440 billion for 2008 is based on an average $90 per barrel crude oil price for the year. In 2002, before the current bull market for oil began, US oil imports cost less than $103 billion. The preliminary figures for last year came to some $327 billion.
With little prospect for cheaper gas prices in the future, any decrease in the US export bill will have to come from a reduction in petroleum usage.
Which brings to mind two important questions:
While gasoline prices continue to inch upward, the U.S. still enjoys some of the cheapest fuel in the world. FastCompany.com put together a list of world gas prices that could make you feel better about $3 per gallon gas.
Country and Price per US gallon:
Norway $ 8.67
Netherlands $ 8.52
Belgium $ 8.36
Germany $ 8.06
United Kingdom $ 7.91
Italy $ 7.68
France $ 7.46
Read the rest of this entry »
An economic analysis released February 25th shows major gains for the U.S. job market and GDP from 2007’s ethanol industry boom (emphasis added):
The analysis, conducted by John Urbanchuk of LECG, LLC, determined that the increase in economic activity resulting from ongoing production and construction of new capacity supported the creation of 238,541 jobs in all sectors of the economy during 2007. These include more than 46,000 jobs in the U.S. manufacturing sector. The goods and services required to produce the estimated 6.5 billion gallons in 2007 added $47.6 billion to the Gross Domestic Product and raised household incomes by $12.3 billion.
While the gains themselves aren’t all that surprising, they may turn the conventional wisdom that “ethanol subsidies are bad” on its head since increased tax revenue actually paid them off: Read the rest of this entry »
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