Gas and Transportation
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Interest in public transit has increased substantially over the past several months as people try to find ways to stop spending so much on fuel. The number of highway miles driven is dropping precipitously. Highways are funded by federal gas taxes, which are falling as people drive less. There is a feedback cycle between the last two points.
Instead of driving, many people are now taking public transit. Locally the Washington Metropoliton Area Transit Administration's Metrorail (the DC subway to out-of-towners) has been breaking ridership records the entire year. Every person who takes a trip on a bus or subway has his or her fare subsidized by the government. Combine that with the slowing economy and stagnant gas tax revenue and there is a recipe for trouble.
As summarized from the New York Times: "But meeting the greater demand for mass transit is proving difficult. The cost of fuel and power for public transportation is about three times that of four years ago, and the slowing economy means local sales tax receipts are down, so there is less money available for transit services. Higher steel prices are making planned expansions more expensive."
The entire system is in need to assistance. The government is now borrowing against the mass transit account of the Highway Trust Fund in order to be able to pay for continued highway maintenance.
As the Department of Transportation wrote on its blog, "It's time for fresh ideas, and a new approach to funding, building, and managing our nation's transportation infrastructure."




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RickIL said at :
9:43 PM, 08 12 2008 | Permalink
Andrew
We are all witnessing the rapid reshaping of our society and the way we interact as the result of that. Procrastination, political obfuscation, the influence of greed and a lack of insight are the culprits. While our esteemed legislators squabble over what is the best method of addressing these issues the rest of us are having to make very real life changing decisions. If energy costs stay high or continue to rise I suspect we will see urban areas grow exponentially as suburban people relocate closer to areas with more services. Small towns that can provide no substantial work to its residents will probably suffer most as the residents relocate creating loss of property taxes and money that would support the local grocery, schools etc. The small towns will become havens for the wealthy further creating more distinctions between the classes. At the same time a resulting greater need for public services will take place in urban areas as you indicate. It will be very interesting to see how this all plays out. Will we be able to bring alternatives on line fast enough to avoid all this turmoil. Or will oil continue to dominate and insure a rapid reorganization of society. I think the next four years will be very telling.
RickIL | August 12, 2008 9:43 PM
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David R. Remer replied to RickIL at: :
10:03 AM, 08 13 2008 | Permalink
Andrew and RickIL, of course none of this is new. We saw the same discussions and desires for mass transit during and after the 1970's oil embargoes.
We know what came of that.
I don't have the evidence, yet, but, it is clear that now that the oil corporations and market speculators have reaped their windfall profits from the dramatic rise in oil and gas prices these last many months, AND now that Congress and the SEC are investigating the causes, the players in the rise of oil prices are backing off, securing another day when they can pull this off again.
It is no accident or coincidence that oil prices are dropping even in the face of the oil disruptions in Georgia. The safest position for the profiteers now, is to let oil prices plummet back to sustainable and non-complainable levels, taking the investigatory heat off them, and lulling the public back into their fossil fuel dependent slumber.
And mark my words, this is precisely what is going to happen if the profiteers have their way. Increasing, not decreasing, our dependence upon fossil fuels. Republicans are for it, demanding more drilling. The oil companies are for it, demanding ever greater lease access to potential oil fields. The market investors are definitely for it, which opens the door for another year of outrageous profitability and speculative profits from fossil fuel rumors of shortages that don't actually exist, some time in the foreseeable future.
And the magic number is right around $100 per barrel, and $2.75 to $3 per gallon gasoline. That is the cost the public is willing to bear and consider themselves lucky compared to the days of the first half of 2008.
Everyone walks away happy - in the short term. But, in the total and complete abrogation of responsibility inherent in this scenario is this: When fossil fuel prices are bearable and acceptable, the motivation, the investments, and the drive to invest in a fossil fuel free future, dries up.
Jack over on WatchBlog was absolutely correct about the need for high oil prices in order to create a less oil dependent future for America.
The appropriate policy going forward should be this: When the economy is hurting, taxes on fuel need to be reduced or eliminated, until the economy is back on its feet. And when it is, the taxes on fuel need to rise dramatically to continue the motivation and force necessary to forge an alternative energy future.
That is what policy should be. But, with the current lot of politicians in Congress, this is NOT the policy we will get. Energy is always up for sale to the greatest number of potential votes at election time for incumbents in Congress. And that fundamental truth will retard an alternative energy future for America by decades, sadly and regrettably, I suspect.
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10:05 AM, 08 13 2008 | Permalink
BTW, Andrew, well written article, and thank you for the links to pertinent information on this topic.
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j2t2 said at :
8:49 PM, 08 13 2008 | Permalink
Andrew good article. Myself Im glad to see the problems we as a nation are having with mass transit. It is a good sign.
I would think that eventually the funding for highway maintenance should level out as the roads are used less.
RickIl instead of relocating from a suburb to a city Ive done just the opposite and relocated to a small town, thinking everything I need is there and its within bicycle or walking distance. Housing is much less expensive, but your rights jobs are the issue.
j2t2 | August 13, 2008 8:49 PM
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RickIL said at :
6:44 PM, 08 14 2008 | Permalink
David
I agree with your assessment of where oil prices will level off. I was discussing this with a friend and said that I figured prices would regress to the 3 dollar range for the same reasons you mention. Anyone who has been following the trend for the last nine years should realize that they are being manipulated. I actually prefer the word conditioned but most people have a problem with that notion. It just seems a bit too surreal and creepy for them. I have grown sick of watching the powers that be play with our sensibilities while presenting what seems to me as well planned deception, to appear as purely capricious events.
I just read that two large solar photovoltaic plants with a combined 800 megawatt capacity are going to be built in California. It sounds like the rate will be higher, but they expect it to drop over time. I personally would gladly pay a fair rate even if it is higher just to wean myself away from fossils
RickIL | August 14, 2008 6:44 PM
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David R. Remer replied to RickIL at: :
2:51 PM, 08 15 2008 | Permalink
Next year, we are investing up to $8000 in a PV system for our home. We will leave the well pump on the grid, but, our entire home should be supplied by the PV since, it is all electric, and our usage is moderate. The advantage of 2x8 walls with double the insulation of ordinary walls, and long 30" roof overhangs to shade the walls except early morning and late afternoon. The house is situated on an E-W access such that the shortest walls get the morning and late afternoon sun. It is a very effective design leaving our house cooled to Texas summers by two window AC units in the afternoon and evening.
I saw on the news this morning that some universities are going all out Green, and the degree programs in this area are really taking off. Very cool!
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d.a.n said at :
7:50 PM, 08 17 2008 | Permalink
Our energy vulnerabilities aren't only gasoline related.
My neighbor got their electricity bill last week.
It was $472 for 1669 KWH (that works out to about 28.3 cents per kilowatt*hour).
I told them where to go to get it for 13.2 cents per kilowatt*hour (www.ChampionEnergyServices.com and ElectricityBid.com for evaluations and comparisons), which is still expensive, but the cheapest you can get around Dallas, TX. (also check out www.
Now the power companies are trying to see how much they can gouge consumers.
And huge rate hikes have occurred in the last two months. There's going to be some major complaining when people get their next electricity bill.
At these rates and the rate of increase, a solar power system is starting to look affordable.
How do your electricity rates and costs compare to mine?
Hopefully, you won't be next?
Once again, deregulation has resulted in many manifestations of unchecked greed. How can one electricity company in Dallas be charging 28.3 cents per kilowatt*hour and another be charging 13.2 cents per kilowatt*hour? There's some major gouging going on here. The coming months will be interesting to see when the voters have finally had enough of corpocrisy, corporatism, and other manifestations of unchecked greed.
So, let's see what we have going on here . . .
Yet, Phil Gramm and his ilk say we are not in a recession, and it was only a few months prior that John McCain was saying things were good.
At any rate, the voters have the government that the voters elect. Keep rewarding incumbent politicians with 85%-to-90% re-election rates, and see what happens. Gee, maybe Congress will give itself another raise, like the 9 raises they gave themselves between 1997 and 2007 (while our troops risked life and limb, went without armor, without adequate medical, without promised benefits, and were forced to do 2, 3, 4, or more tours in Iraq and Afghanistan)?
d.a.n | August 17, 2008 7:50 PM
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RickIL replied to d.a.n at: :
11:45 AM, 08 18 2008 | Permalink
d.a.n.
Com Ed was caught up in gouging the customer here in Il about 20 years ago. Thanks to the consumer protection groups the Illinois Commerce Commission was formed which is supposed to watch out for the consumer with regards to utility costs. Our rates were frozen and we received credits for many years as payback for an industry greedily taking advantage of a situation. We realized our first increase in about 10 years this last summer. Once again the utilities attempted to take it to the max and were returned to reality a months later by the commission. I think it is a never ending battle that requires vigilance to keep these would be thieves in order.
RickIL replied to d.a.n | August 18, 2008 11:45 AM
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RickIL said at :
11:59 AM, 08 18 2008 | Permalink
David
I recall mention of the obstacles you had to go through just to build a home that was not in keeping with the norm. I wish I could lay claim to such a proactive and progressive approach. It is nice to see people actually taking action instead of just complaining.
And yes, I agree that these are very cool and exciting times with regards to new technology and the possibilities they present. It is people such as yourself who are willing to spend the money to obtain some degree of independence that will lead the way to a society not at the whim of those who control the energy assets. You are helping to build a viable and practical energy trend for the future.
RickIL | August 18, 2008 11:59 AM
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