Despite price drop, drivers stick with fuel-saving habits

[depakid]

Don't look for monster SUVs to stage a comeback any time soon, but Oregon drivers are gingerly stepping on the gas.

Gas prices in Oregon dropped to $2.86 a gallon on Tuesday, the lowest price in about 13 months and a steep drop-off from the $4-plus levels that motorists paid at the peak in July. And although they hope prices fall even lower, several said the price drop has helped ease the pain at the pump -- and in their checkbooks.

"Instead of spending $65 to fill it, I just spent $43," said Mark Cach, of Portland.

But like several other motorists, Cach said he plans to continue some of the gas-saving measures that he relied on during the $4-plus a gallon days. He said he combines multiple errands into one trip and avoids driving as much as possible. Oregonians aren't the only ones enjoying a respite from record gas costs. The national average price also plummeted, hitting $2.63 a gallon -- the lowest since March 29, 2007. A year ago, a gallon cost $3.06 nationally.

The price of gas is falling with crude oil prices, which have dropped from their July record high of $147 per barrel to about $62 per barrel on Tuesday, according to AAA Oregon. Americans are also driving less, the agency said, racking up 78 billion fewer miles in the first 10 months of 2008 than in the same period a year ago.

The easing prices have persuaded Erica Cates, a teacher who lives in Southeast Portland, to go out to restaurants a little more, she said, adding that she found herself staying at home to save on gas and cut costs overall.

"I'm starting to do a little bit more now that the gas prices are coming down," she said. Still, she expects to continue using her bike and to walk for shorter trips.

"I've kind of got in the habit now," she said.

More: http://www.oregonlive.com/news/index.ssf/2008/10/despite_price_drop_drivers_sti.html

[Howzit]

1. People have less money to burn on shopping, so they drive less.

[Sherman A1]

2. Excellent!

I hope the $4.00 per gallon price sticks in the minds of everyone. I know I really cut back on my driving when it got to $1.20 per gallon (Yes, several years ago). I still go when I need to go, but just doing a few things to improve mileage really helps, combining trips, tire pressure, coasting downhill when possible, timing lights as I can. It all helps.

[phantom power]

3. That would be because the oil prices dropped in response to economic collapse.

I've been thinking, that what we're seeing is the contrapositive of the more common peak-oil scenario. In the last month, we saw an economic implosion cause a round of demand-destruction, which in turn reduced oil prices. As opposed to the more commonly-cited scenario of oil prices rising, resulting in economic implosion and then demand destruction.

Or maybe a cleaner way to put it is that the reason peak-oil advocates think peak oil is important is because our economy is so tied to oil. To the extent that you only have lower oil prices when the economy is bad. Which happens first is sort of immaterial. The point is that the two now go together. We have left the regime where you can have a strong economy and low oil prices simultaneously.