We Pay the Most for Oil

Re: [spiers] We Pay the Most for Oil

> (Never mind the
> SUV was a response to mileage rules
> killing the family station wagon).

I contend People buy SUVs because that is what they
want. The fuel efficiency of the Station Wagon,
regardless of government requirements, has very little
if anything to do with its demise. The station wagon
tanked because the SUV is a better choice. However,
fuel efficiancy of the SUV has killed sales as the
price of gas has risen. The government could save the
SUV by imposing fuel efficiency requirements on them.

There is something else going on but I don't know
what. You can certainly make a more fuel efficient
SUV but car companies are not, Why? It would be easy
to lighten an SUV up by using composites in the frame
and body, but they don't. Why? You can change the
engine to a much more efficient diesel or even a
hybred diesel but they don't. Why not? Boeing
Aircraft makes fuel efficient airplanes because that
is what its customers want and need to stay
profitable. Wouldn't John Q Public want the same
thing?


> It is government policy USA pays the most. This is
> no secret, And it is no secret the oil
> companies have done tremendously well, the best
> ever, with this policy.

I'm only an armchair economist, but.... This policy
could not be sustained. The higher the price for oil,
the more the door opens for alternatives. And, high
oil prices hurt the economy by driving up costs.
People spend less, factories produce less, people
loose jobs, etc... then you kill off demand for oil.
Oil companies would be shooting themselves in the foot
if they supported this.

Anthony

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