Ford Motor Company and Azure Dynamics have teamed up to introduce a battery electric commercial van called the Transit Connect. The electric van will be available in America and Canada beginning in 2010 and is the first vehicle to be produced as part of Ford’s accelerated electric vehicle strategy. Azure will integrate its Force Drive battery electric drive train into the van and Johnson Control-Saft has been selected as the lithium ion battery cells and battery packs supplier. The Transit Connect van is being marketed for fleet and retail use.

What Ford has not brought to market is their Ford Escape Flex-Fuel Hybrid which they have been working on for close to a decade. I actually drove one in a car rally in upstate New York two years ago (it was a great car) but the company discontinued its work claiming that there was no demand. How quickly times change.

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In my experience, it doesn’t take a higher degree and advanced knowledge of oil economics to see that rampant speculation is behind the crazy swings in oil prices we’ve seen in recent years. Even so, it’s a topic that economists and pundits have debated ad nauseum.

In what may be one of the most exhaustive analyses of the issues surrounding the murky field to date, Rice University researchers from the Baker Institute for Public Policy have released a new policy paper — “Who is in the Oil Futures Market and How Has It Changed?” — aimed at setting the record as straight as can be.

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I’m sure you’ve all read or heard people on TV saying that hybrid and electric cars won’t really catch on because oil prices are so low right now. Most of the time the comment goes unchallenged — which is really irritating for a number of reasons.

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This morning, after I finished my weekend ritual of wasting another perfectly good hour listening to Car Talk, I clicked on over to CarTalk.com to check on something brothers Tom and Ray Magliottzi (aka: Click and Clack, the Tappett Brothers) had mentioned during the show. While piddling around the site I found a link to an excellent audio rant from younger brother Ray who spoke passionately about why we should boost the U.S. gasoline tax fifty cents right now.

Several states are already mulling increases in gasoline taxes at the state level, but a Federal tax would create a different kind of revenue stream with a different kind of mission.

Both Ray and Tom argue that the revenue raised, somewhere between fifty and one hundred billion dollars annually, would be used to pay for infrastructure improvements and investments in a manufacturing shift in Detroit away from focusing on the automobile to focusing on the production of high-speed trains required by a revolution in American mass transit.

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Last week sustainablog asked what your government was doing about peak oil. With all the layers of government to which I am subjected, I immediately thought to myself that there is no short answer. Now, at the very least, I have a partial answer:  My federal government is preparing for peak oil by topping off the tanks of the nation’s strategic petroleum reserve.

The U.S. Department of Energy today announced that it plans to take advantage of the recent decline in crude oil prices, and will purchase approximately 12 million barrels of crude oil for the nation’s Strategic Petroleum Reserve (SPR) to replenish supplies sold following hurricanes Katrina and Rita in 2005.

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In November 2008, consumer prices fell to their lowest in 76 years. Will the Bush Depression be worse than the Great Depression?

1932 is considered the bottom point of the Great Depression:

Though the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929. During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929…The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the downward spiral. The result was drastically falling output and drastically rising unemployment; by 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30 percent of the work force.

Have we reached the bottom of this economic depression or is the worse still to come?  Mike Schenk, an economist for Credit Union National Association, expressed his economic concerns, “This is scary stuff.  We are teetering on the brink of a massive downward spiral. Deflation is a threat.”

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This plan would provide emergency loans to General Motors and Chrysler; however, Ford has stated it will not seek out federal loans.  GM and Chrysler claim they will not be in business much longer without federal assistance.  According to GM:

From plants to parks. From dealerships to driveways. From gas stations to grocery stores. What happens in the automotive industry affects each and every one of us. In fact, the collapse of the U.S.-based auto industry wouldn’t just impact the nearly 355,000 Americans directly employed by the Big Three. One out of every 10 people in America is employed in a service that is related to the U.S. auto industry. If a plant closes, so does its suppliers, the local stores, the hot dog vendors, and the local restaurants.

The House passed the American auto industry bailout bill largely along party lines.  The final vote was 237 to 170,  with 32 Republicans from auto industry states joining 205 Democrats in supporting the rescue package.  Senate Republicans have the power to kill the measure, and the White House has failed to gain their support. In an effort to compromise with Republicans, House Democrats agreed to drop a provision in the auto industry bailout that would have forced the automakers to end their lawsuits challenging state emissions standards, such as in California.

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If you think you’ve heard those words a lot from our presidential candidates, you’re right. The Global Language Monitor, which has been tracking the entire Obama/McCain showdown, puts them as the top three “buzzwords” in this election.

Most of us have played the Buzzwords board game, but at GLM, “political buzzwords are terms or phrases that become loaded with emotional freight beyond the normal meaning of the word.”

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Every time the price of oil drops, the demand for that same product increases and the  demand for alternate fuels, decreases. Why are gas prices falling?

China Daily reported that “oil dropped more than 6 percent to below $88.00 a barrel on Monday as a global market rout churned concerns that faltering fuel demand could slow further.”

In other words, we aren’t buying enough, so it’s time to lower the price.  But can anyone other than the people vested in that market honestly say that we don’t use enough oil?

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Do cyclists belong on the road or the sidewalk? Should cyclists defer at all times to motorists? Who has right of way in any given situation? How can bikes and cars peacefully coexist?

Various municipal and state laws address these questions, among others. To identify what statutes apply to your home area, view the Mass Bike list, which links to various state’s laws online.

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The headline of the ad says, “Highest mileage or lowest price. The 1976 Honda Civics.”

A chart in the ad says that the average sedan or hatchback with a manual 4- or 5-speed transmission (costing only $2,729) reached EPA estimates of 43 miles per gallon on the highway, 32 in the city and 36 mpg combined.

And where are we today? What has happened in 32 years of American “progress,” “advancements in technology” and “economic growth” (well, until these last several years)?

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In other words, this time was just a drill, but next time might not be.

Image credit: Screenshot from “Duck and Cover,” a U.S. government-produced Cold War cautionary film for children, via Wikimedia Commons.

But some recent comments, especially about the Drive 55 campaign that has been in the general media again lately, have me thinking about some particular gaps in our common understanding and, therefore, overall communication.

Interestingly enough, I’m not even an advocate for a change in speed limit laws. I’m not against such changes. But I’m not pushing for them, either.

What I am is a facilitator of a discussion about the matter that is under consideration for the purpose of saving fuel, money, and lives.

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Going from St. Louis to Chicago, then up past Milwaukee before backtracking that route home, my wife and I drove our 2008 Honda Civic, a 5-speed which is rated to get 36 miles per gallon on the highway and 25 mpg in the city (29 mpg combined).

On three gas stops, our mileage figured to 40.25, 39.29 and 39.48 mpg.

That included city driving, traffic stoppages, and miles and miles of construction slow-downs and more stoppages.

Could it be that driving the speed limits, usually 55- and 65-mph on the highways and interstates we used, gave us that boost to get from 36 to 40 miles per gallon?

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Once mandated in the 1970s — but eventually discarded for 65-75 m.p.h. limits handled by individual states — the concept has resurfaced as oil and gas prices have rocketed to record heights.

A news story published this morning in USA Today brought out the naysayers in droves. An overwhelming majority of the story’s commenters online booed and hissed at the notion that they should do any such inconvenient thing.

Some main complaints are being echoed throughout the comments chamber:

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Turns out, 50% of people in the US are wiser than I thought: there is no quick fix or simple solution.

Another interesting result from the survey: 48% of consumers don’t see McCain or Obama as having a particular advantage when trying to work with the auto industry to bring more fuel efficient or plug-in vehicles to the market in the future.

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Watching the news is a dangerous enterprise for those of us trying to maintain a clear picture of this election season’s most important issues. Despite all the chatter, it seems relatively obvious that our most fundamental problem is American energy policy, or more specifically: oil prices and our dependence on cheap energy.

If you buy that premise, which I’m prepared to debate elsewhere, then this election should really only be decided by one evaluation criterion: which candidate has a better plan to reduce our oil consumption, replace it with viable alternatives, and spur innovation and commercial development of new technologies (and a new green-collar economy)?

A quick survey of both candidate’s websites makes it fairly obvious (see the official stance of Obama and McCain). I’ll be comparing each candidate’s plan in more detail later on, but for now I’ve republished some of the main points from Obama’s campaign website, in order to highlight how he intends on dealing with oil prices and our dependence on them.

To assist in this evaluation, here are three important criteria. If we’re serious about transitioning away from petroleum as our primary transportation fuel, we’re going to have to hit it from multiple angles. It doesn’t seem totally unreasonable to estimate that each of these could account for 1/3 of our total fuel usage:

• Decrease consumption and improve efficiency (#8 & 9).
• Develop and rapidly commercialize alternative fuels and infrastructure (#1, 4, 5, 6, 7).
• Develop and rapidly implement new technology (#1, 2, 3).

Key elements of Obama’s plan:

1. Invest $150 Billion over 10 Years in Clean Energy with a focus on technology developed in the US:

This includes next generation biofuels and fuel infrastructure, commercialization of plug-in hybrids, development of commercial-scale renewable energy, low-emissions coal plants, and beginning the transition to a new digital electricity grid.

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With the postponement of the 2 pence per liter fuel duty rise, fuel duty in the UK today is 17% lower in real terms than it was under the previous conservative government, who made a series of above inflation increases as part of a policy to reduce congestion, pollution and green house gas emissions. Recent crude oil prices have offset the need for tax rises to achieve these goals.

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When asked about the McCain statement, presidential spokeswoman Dana Perino said the recent drop in price could also be a product of diminished demand.

“I don’t know if we fully deserve the credit, but I do think that it was important to send a signal to the market that we are serious about moving forward.”

At last check, a barrel of light, sweet crude oil fell to $124.47 on the New York Mercantile Exchange on Wednesday. That’s down from more than $140 a barrel earlier in the summer.

Related Posts:

• “Bush Administration Proposes ‘Fire Sale’ of Rocky Mtns. For Oil Shale Development”
• “Bush Lifts Executive Ban on Offshore Drilling - Why it Matters and Why it Doesn’t”
• “McCain Calls for More Offshore Drilling - What Else Would he Say in Houston?”

Photo Credit: jurvetson via flickr under a Creative Commons License

The US Energy Information Agency does a fine job of keeping statistical records of energy sources - though its predictive arm has had some real miscues over the years. The graph associated with this article provides a picture illustrates that the use of oil for electricity in the US may be small now, but that is because it was replaced by nuclear fission during the growth years in the 1970s and 1980s.

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