The biggest factor affecting electric car sales is the price at the pump. And it’s on the rise. The national average is now $3.52 per gallon—up $0.38 from a year ago. We still have a way to go before we hit a potential $4 tipping point, when average consumers begin to panic and look for alternatives such as EVs. But the slow and steady climb is already enough for GOP presidential candidate Newt Gingrich to use gas prices as a political football. Expect more of this rhetoric as we approach November—especially if gas prices continue to climb.
Appearing today on CBS News "This Morning," Gingrich said that President Obama is fantasizing that electric cars are “going to liberate us from Saudi Arabia." Gingrich accused Obama of wanting gas prices to rise. “The high gas prices are a direct result of Obama,” said Gingrich.
“Steven Chu, his energy secretary, said in 2008 he wanted gasoline prices to get to the European level, which is $9 or $10 a gallon. Last year, the president said people shouldn’t complain about high gas prices — they ought to buy more efficient cars. The president himself said he wants to get there, he just wants it to be gradual. His [energy] policy has been outrageously anti-American.”
Is Gingrich suggesting that energy independence is anti-American?
Gingrich claims that his policies could lower gas prices to $2 a gallon—a claim frequently made by former GOP candidate Michele Bachmann. Meanwhile, rival Rick Santorum recently told an Ohio audience that urban Americans should brace themselves for $5-a-gallon gas. Both candidates blame President Obama for not aggressively pursuing more oil exploration and drilling, and an expansion of oil pipelines through the heartland of the United States.
Regardless of the candidates’ positions on electric cars, gas prices and oil drilling, the topic is likely to gain increasing exposure in the coming months—boosting awareness of EVs among car shoppers ready to help America kick its oil habit.
Bradley Berman is the editor of PluginCars.com. Brad writes about alternative energy cars for The New York Times, Detroit Free Press, Reuters and other publications. He is quoted in national media outlets, such as CBS News, ABC News, CNBC, CBC, and MarketWatch. Mr. Berman is a tireless researcher of the green car market. He is the transportation editor at Home Power magazine.
· abasile · 12 weeks ago
Decoupling our economy from oil will strengthen our hand should we choose to further confront nasty regimes in the Middle East.
The problem is that petroleum and gasoline are priced on world markets. If the President had the ability to prevent rapid price escalation, I'm sure that in an election year he would be doing just that.
· EVNow · 12 weeks ago
@abasile " If the President had the ability to prevent rapid price escalation, I'm sure that in an election year he would be doing just that."
In the old days a call to the Saudi King would do the trick. Saudi Arabia had excess capacity and they could open the tap wider anytime they wanted to cool the oil market. Ever since 2005 they have lost that ability. Saudis no longer control world oil prices. Just another obvious side effect of Peak Oil.
To an extent Obama owes his presidency to the run up in oil prices and subsequent financial collapse. It will be ironic if the oil price run up next time caused him to lose the election.
Because of Peak Oil the oil prices will go up whenever the demand goes up i.e. whenever the economy seems to be recovering. But Obama needs a robust economy to win - and that robust economic growth will spike the oil prices which will sync the economy & re-election chances.
· ex-EV1 driver · 12 weeks ago
@EVNow,
The US used to be the market for most of the world's oil. Now the China and others are becoming equally or more dominant. We're going to become just like Europe: Begging for oil from whomever we can get it and paying the price they demand.
I worry that opportunists from either party will take advantage of the affect of this on the voting public with detrimental results.
I'm glad that EVs are at least being produced by multiple manufacturers today. It will be hard for people to ignore their neighbors who aren't suffering from oil prices as much as they are. They'll hate us initially but come over eventually.
· abasile · 12 weeks ago
There is some question as to whether or not Peak Oil is truly upon us. Peak crude, yes, definitely. That explains the Saudis' loss of leverage. However, there is likely a huge amount of exploitable bitumen and kerogen (oil sands and shale oil) in the world, especially in North America. The downsides are that those sources of "oil" are more expensive to tap and that doing so has greater environmental costs than traditional crude.
Even if Peak Oil is not a problem, however, there is the issue of world demand growing faster than supply.
· Londo Bell (not verified) · 12 weeks ago
U know, the "don't ask, don't tell" policy could have worked great with S. Chu & B. Obama, on hoping to get oil prices to the int'l level, and people driving more efficient vehicles.
In a way, Gingrich is right about the anti-American statement. As President, the job is to protect the interest - including the financial interest - of its citizens. Acknowledging and encouraging pricing increase for a commodity that is a critical part of the citizen's lives is not to the interest of the people. Bear in mind, US does have a big group of middle, lower middle to poor class that can neither afford expensive gasoline nor new vehicles that are hybrids or EVs. Luckily, our public transport system is working flawlessly and cheap to everyone that uses it (sarcasm here), in order to help those folks.
Just let the market does it job on oil prices. No need to say a word. Then this means a smaller gov't, a gov't that doesn't intervene with the open market (and no bailout), and a gov't that "silently" encourages move to fuel efficient vehicle. Win-win-win to all!
· CelticSolar (not verified) · 12 weeks ago
Steven Chu, Secretary, U.S. Department of Energy, said it well in the video link below. We can sit on the sidelines using 100 year old technology, or we can embrace plug-in cars and play to win.
· Lad (not verified) · 12 weeks ago
Shame on all you for believing the high cost of gasoline is a political problem. It's plain and simple a marketing problem for science to solve. Wouldn't you like to stop being lead by the Oil companies and their bought politicians?
There are EVs today that solve most of the driving needs of our people. And, they have so many advantages over gasoline cars, it is difficult for me to see how you can believe continuing to depend on oil companies and trusting politicians is a solution. It isn't; plain and simple, again, the days of cheap gasoline is over.
The GOP solutions are all the same: Use tax money to keep the price of gasoline low...anyway you cut it, you will still pay more for gasoline, Either at the pump or indirectly as increased taxes. Right now there are over 250 different oil subsides that cost billions in tax payer funding. If the GOP and the oil gang get their way, subsides will greatly increase and your middle-class life style will be quickly flushed away.
· alt-e · 12 weeks ago
So to highlight little gems from this article:
The guy who wants to open a base on the moon thinks that electric cars are a fantasy over a year after the mass production of EVs began.
Don't worry about the high cost of oil, Michele Bachmann has a plan to get us to $2 per gallon gasoline.
I feel better already :)
· Chris · 12 weeks ago
Lowering the price gas is going to be a nice trick since the US is now an oil exporter.
· Michael Coates · 12 weeks ago
Quote from Newt today in Oklahoma (as heard in a radio clip): "What the liberals don't understand is you can't put a gun rack in a Volt."
· indyflick · 12 weeks ago
The fact is America's refiners have been increasing gasoline exports to foriegn markets, taking a lot of supply off the U.S. market and causing prices to increase even in the face of falling demand. Gasoline demand in the U.S. has been falling every year since 2007. Last year it dropped another 2.5%. The reason for that is two fold. Unemployement means less commuting. Second, vehicles have become much more fuel-efficient over the years. So, as the demand falls the refiners, trying to hold prices, exported more and more gasoline. They have exported so much gasoline that prices are increasing. Remember during the 2004 and 2008 elections where the GoP were saying the issue was we hadn't built a new refinery in decades and that casused gas prices to be so high. Bullshit. We still haven't built a new refinery and yet we have far more gasoline than we need.
· CharlesF (not verified) · 12 weeks ago
indyflick, you make a good point about the GOP not knowing what causes gas prices to go up. They keep talking about getting the price down by increasing our production. The old supply and demand argument that we all learned in elementary school as the price driver in a capitalistic system is not as simple as the simple minded think. Oil prices are set by world wide supply and demand. We could produce as much as possible and the world price would change very little, as we cannot produce enough to make a significant change in world supply. Even if we could produce a lot, OPEC would just adjust their supply a bit to keep prices where they want them.
The GOP as captured by the TEA party is wrong on so much it makes me a straight ticket voter, something I thought I would never be.
· Montreal EV fan (not verified) · 12 weeks ago
I find it difficult to understand how a conservative politician can oppose sustainable transportation, and support instead an unsustainable fuel and the associated waste.
Conservative are supposed to be all about fiscal responsibility, not spending what we don't have, balancing the budget, reducing the debt load, and achieving fiscal sustainability.
Yet, paradoxically, they oppose balancing the energy "debt" and creating a sustainable energy economy.
How can anyone think that a move to electric vehicles is contrary to conservative values? This is one of the great mysteries of the current political landscape.
· SteveEV (not verified) · 12 weeks ago
I get so frustrated hearing idiotic comments from politicians. Even more so when voters actually believe them. Gas prices will rise with a brief bit of adjustment while the oil companies game the elections. There is nothing Newt or Obama can do about it. The only way to avoid high gas prices is to stop buying the stuff. There are alternatives.
· jmac (not verified) · 12 weeks ago
@ EVNow
Below is a website for ev sales in France. It is in French but you can use the Google translator Archives go back as far as 2010, Breaks down sales by make and model. Also bar graphs of month by month sales and yearly totals
http://www.automobile-propre.com/dossiers/voitures-electriques/chiffres
Germany, ( for 2011 only) at this this site.
http://cars.european-traveler.com/germany/2011-full-year-best-selling-el...
Canada (2010 and 11). Covers Leaf and iMiev sales for U.S. and Canada. Selection boxes at upper right are for manufacturer and model. Select Nissan and then Leaf (or whatever you want)
http://www.goodcarbadcar.net/search/label/Canada%20Auto%20Sales?max-resu...
Norway.......France..... Germany... etc, Best Selling Cars--Matt's Blog. Covers 160 nations on right side of homepage. Large car markets like France and Germany have 350 or so makes and car models listed in descending sales order.
http://bestsellingcarsblog.com/2011/12/06/norway-november-2011-mitsubish...
Have fun
· jmac (not verified) · 12 weeks ago
@ EVNow
European EV sales for first half of 2011, Covers 14 eu countries. Make and model with country totals. In French, You can probably make out all right without translating.
http://pro.largus.fr/s_informer/psa-et-mitsubishi-dominent-le-marche-du-...
China. About 5,655 EV's sold in China 2011.
http://gas2.org/2012/01/30/in-china-ev%E2%80%99s-outsold-hybrids-2-to-1-...
Hong Kong
http://analysis.evupdate.com/industry-insight/hong-kong-city-state-commi...
Russia
http://autolife.ua/en/u-rosiyi-kupili-vsi-14-elektromobiliv-mitsubishi-i...
· Brian Schwerdt · 12 weeks ago
@Michael Coates,
Check this out:
http://www.youtube.com/watch?v=zK0ieX9mHr4
· EVNow · 12 weeks ago
@abasile "However, there is likely a huge amount of exploitable bitumen and kerogen (oil sands and shale oil) in the world, especially in North America. "
True. But peak oil is not just about reserves but also production. Unconventional oil has major scaling problems.
In anycase, practically, the Peak Oil (conventional), has forced a new economic delimma for the world.
1. Higher price of oil causes economic stress leading to recession (2008)
2. Recession lowers demand causing the oil price to plummet (2009)
3. The economy slowly recovers (2010-12)
4. Recovering economy increases oil demand
5. More oil demand increases oil price.
6. Back to step 1
I expect great plitical churn as this cycles becomes more apparent.
· EVNow · 12 weeks ago
@jmac
Thanks a lot for the links.
· EVNow · 12 weeks ago
I should add. The cycle of oil prices & economy getting into this viscious cycle is explained well by the noted economist Jeff Rubin in his book "Jeff Rubin: Peak Oil Will Make Our World A Whole Lot Smaller".
http://www.treehugger.com/culture/jeff-rubin-peak-oil-will-make-our-worl...
· brg2290 · 12 weeks ago
As it wouldn't be unheard of for a politician to twist another's words to an advantage, I'd like to know the exact quotes by Chu and Pres. Obama, and the context within which they were given.
About Gingrich's statement that Obama's energy policy - "His [energy] policy has been outrageously anti-American.” - I might have to agree in a way. Americans are used to having easy and cheap access to the world's resources and consuming those resources on a higher per capita basis than other inhabitants of the earth. I happen to agree with the President's contention that oil prices in America do not accurately reflect the cost of the actual commodity. But we're paying in hidden ways...the aforementioned subsidies to the oil industry, the military cost of protecting oil access, etc. If Gingrich quoted Pres. Obama accurately and the President did say Americans shouldn't complain about higher gas prices but should buy more fuel efficient cars, I'd say that statement speaks truth to the real world situation of prices increasing for a non-renewable resource. If Gingrich could deliver on his $2.00 / gallon gas price it would be through the hocus pocus of hidden costs just to make Americans think they're getting the resource they're entitled to at a price they're entitled to. To me, this dishonest campaign promise and the maze of price support it would require is more anti-American than Obama talking about the reality of future oil prices.
· Anonymous (not verified) · 12 weeks ago
I usually never post in any of these things, but this time i just couldn't stay shut.
So as many of you guys are aware, according to the Institute for Energy Resource, the "United States' recoverable oil, natural gas, and coal endowment is the largest on Earth." Let me say that again, "THE LARGEST ON EARTH!!" Congress KNOWS this, and yet these democrats WANT TO keep prices high and then blame someone else for keeping it high...
So forgive me for saying it, but it IS OBAMA'S FAULT the prices of oil is extremely high - and might get low for a while to show "gradual change" and then rise again - because he is well aware we can drill here in the United States, but NOOO! Please don't drill in the United States because we can drill this stuff WITHOUT making a mess like other places do and we will be forced to CUT DOWN the prices, and we democrats don't want that!! Please don't cut down the prices of gasoline, because we want to keep them high for the people who cannot afford them, for the people who have no other choice than to pay for this because we cannot get another up-to-date car that doesn't need gasoline...
It's all THEIR fault prices are soo high because they want them so high and could lower them by drilling here but Steven and Obama don't want the prices lowered.
· alt-e · 12 weeks ago
The Institute for Energy Resource is funded by Koch Industries and ExxonMobile.
· ex-EV1 driver · 12 weeks ago
Thanks alt-e,
I think you've summed it all up quite well. Do you have any solid evidence of this I can point to?
· alt-e · 12 weeks ago
I think that Anonymous means the Institute for Energy Research (IER). They have said things similiar to what Anonymous listed. I don't think there is such a thing as the "Institute for Energy Resource". Correct me if I am wrong.
Here is a summary in Wikipedia and an article from Media Matters on the funding sources of the Institute for Energy Research:
http://en.wikipedia.org/wiki/Institute_for_Energy_Research
http://mediamatters.org/research/200703020001
· Dan · 12 weeks ago
@EVNow - I like your 6 steps in the oil/economy cycle. I fear that at some point the price drop of step 2 won't happen, either because of Peak Oil or because other emerging economies will have more ability to pay for it - and the US will be stuck in the suburbs with a Hummer and a crappy paying job (figuratively speaking).
· Hydro (not verified) · 12 weeks ago
"So forgive me for saying it, but it IS OBAMA'S FAULT the prices of oil is extremely high -"
Well, do a Google search for inflation adjusted gasoline price chart and look at the evidence. There has been a long decline in gasoline prices, adjusted for inflation, starting in the early 1900's. The trend reverses sharply upward at the beginning of the Bush presidency and continues upward sharply from there. Now, I happen to think that demand from China and other developing nations is the main reason for this trend, not Bush's energy policy, but the chart does not support Obama as a cause unless you give him credit for stimulating economic recovery.
As for the bit about America's abundant energy resources, that's a correct assessment if you include gas and coal. Currently, natural gas prices are dropping like a stone because of oversupply and coal prices have been affected by exports to China. Few vehicles are powered by CNG and none by coal so mention of these resources on a transportation forum in connection with gasoline proves what exactly?
Gasoline prices will continue to increase due to worldwide demand. Best to start making the hard choices now rather than wait for future price shocks.
· ex-EV1 driver · 12 weeks ago
@Hydro,
"Best to start making the hard choices now rather than wait for future price shocks"
That is why many of us are here on this site.
· Hydro (not verified) · 12 weeks ago
Indeed!
· darelldd · 12 weeks ago
>> As President, the job is to protect the interest - including the financial interest - of its citizens. Acknowledging and encouraging pricing increase for a commodity that is a critical part of the citizen's lives is not to the interest of the people. <<
Is it also the president's job to ensure that our way of life is dependent on other countries? Is it his job to ensure that our transportation remains unsustainable? Is it is his job to cost us more in the long run for the sake of winning an election in the short run? (we don't need to answer that last one).
This isn't about raising the cost of gasoline. It is about pricing the commodity appropriately for the damage it does to our health, our economy, and our foreign policy. Why shouldn't we pay at the pump what it costs us as a society? If you think that high gas prices are bad for the poor, just wait until you see what low gas prices (continue to) do.
Artificially low gas prices undermine investment in alternative energies. It undermines investment in alternative transportation. It seems warm and fuzzy in the short term, and it shoots us in the foot for the long term.
· Michael Coates · 12 weeks ago
@Brian Schwerdt,
Love it!
· jmac (not verified) · 12 weeks ago
@ EVNow
Hope you are still tuned in. It is I that have you to thank for the Japan Leaf totals on the My Nissan Leaf site, Here is an interesting U.K site called EV Fleet World. Interesting article about the Opel Ampera. (Chevy Volt) Apparently the Volt has some 6,000 actual orders, and Opel expects sales of 10,000 for the Volt in 2012. The Volt is only manufactured in Detroit as far as I know and is exported to Europe.
http://www.evfleetworld.co.uk/newcar/companycar/homepage/index.cfm?clk=438
· Teq (not verified) · 12 weeks ago
Seriously
I'm a huge fan of EVs, I watch and read every EV news i can lay my hands on, but this makes me sick
I live in small country in Europe, electric cars among public are just a myth, our avg annual salary is 9492 Euros, USA's avg annual salary is 47000 $.
3.52$ for a gallon? Pf, now we pay 1.509 for a liter which is 5.71 for a gallon.
You can buy Nissan leaf for 25000 $, we can only buy it in Belgium or UK and it costs 35 000 Euros.
Seriously, you complain about gas prices.
· ex-EV1 driver · 12 weeks ago
Teq's comments about Europeans being in such bad shape that they really can't get ahead far enough to get out of their oil dependency is a real problem.
This is one of the reasons I believe that it is important for Americans to start putting their money into cars that aren't dependent on oil now, while (from counting the numbers of new and luxury cars on the roads and crowds in the malls) there still appears to be a lot of discretionary income available.
· darelldd · 12 weeks ago
Indeed. Many of us have been saying that for years, while the other 99% seem to think that we should "wait and see."
A $70,000 Lexus shows that you've got the right stuff. You've arrived. You've earned it, damn it. But a $40,000 Volt? You're an idiot who makes too much money.
· ex-EV1 driver · 12 weeks ago
@darelldd,
You ought to see what they call (mostly behind your back) you if you buy a Tesla.
The other crabs definitely will try to pull you back into the pot.
· Ridgecrest Man (not verified) · 12 weeks ago
It is fascinating to read through everyone's comments. One thing that I make a note of that the negative comments were poorly written, and the positive comments were well put together. Does it reflect their levels of education?
I am generally a new car enthusiast. I notice that this year is the kick off of many alternative vehicles, and looking at the near future there are all kinds of them entering our market. If you look at our country number of miles driven in last few years and the amount of gasoline we American used on a down ward trend, oil company better days will be over soon. They have been trying different ways to keep the gas price high by closing down their refineries. This is one last hope to make a quick buck!!!
Just wait and see!
· EVNow · 12 weeks ago
Back on topic, an interesting thing happenned in the debate. King, as usual, lobbed a softball - asking the candidates to talk about gas prices. But, none of them wanted to talk about gas prices ! They switched to talking about Iran's nuclear ambitions etc.
Strange.
· Former caddy owner (not verified) · 12 weeks ago
It's been all over the news that natural gas production has been drastically reduced due to over-production, too much supply and low prices.
Also, the oil companies are shutting down refineries for "maintenance". 2 or 3 already shut down here with 5 as the final goal. Another 5 to be shut down in Europe. Just in time for elections. Demand for gas was at it's lowest since 2008. Production was outstripping demand. Thus the lower prices we were witnessing.
These guys know they have the farther than right wing in their pockets and they want to get a puppet in office. Once they do, you will never see prices go down. They need to keep them up to maintain their lifestyle. One argument they make is that higher earnings + subsidies mean more jobs, in the past 5 years, they have made a 1/2 trillion dollar net profile, but their work force has shrunk by 11,000 + jobs.
I hate these guys! They are anti American! That's why I bought my Volt!
Right wingers say that we need to drill more and build the pipeline. All this would take about 25 years to take full effect. If everyone bought a hybrid or EV, we would solve the problem in less than one year!
· ex-EV1 driver · 12 weeks ago
"All this would take about 25 years to take full effect"
. . . and it would be depleted (or become prohibitively expensive to extract) in 40 years. After that, our economy would be totally in the tank and we'd have nothing viable.
Unfortunately, if everyone bought a hybrid, you would at best reduce our consumption by half, probably more realistically by only about a quarter. This would only postpone the effective depletion point to maybe 50 or 60 years.
We really need viable alternatives as soon as possible. I, too, am disgusted with these "Right Wingers".
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Let us see - these candidates want to bomb Iran. They have been extremely hawkish on Iran (esp Santorum) - and then they want to blame Obama for high gas prices ?!