U.S. Hit's "Peak Demand" for Gas- Again

Apparently we were doing this with gasoline this summer
because gas sales hit an all-time high in August.

August was the biggest month ever in the United States for gasoline consumption. According to the Energy Institute at Haas, Americans burned through 9.7 million barrels per day- more than a gallon a day for every man, woman and child.

This comes as a surprise for some as analysts have said the U.S. reached "peak demand" in 2012 and that gas consumption would continue to decline in the foreseeable future. Ummmm, no. U.S. gas consumption has increased steadily four years in a row now for a couple reasons. Those include the end of the recession and people having more income, plus low gas prices.

Economists have shown in many studies that there is a definite relationship between income and gasoline consumption – when people have more to spend, gasoline usage goes up. During the recession, Americans gravitated toward smaller, more fuel-efficient cars. Today, they are buying bigger cars and trucks again and driving more miles. Gas prices were also high during the recession, above $4 a gallon at times.

10 Traffic Myths Debunked

One of our GIS analysts opened an umbrella in my office the other day. I jokingly reminded him that he just brought bad luck on himself. He told me that's an old wive's tale and that he was going to bring a ladder into my office to walk under. It turns out that there are many, many old wive's tales, also known as myths, in the transportation world. Citylab put together a post on 10 Tired Traffic Myths that you can read here. 

It includes:

• More roads mean less traffic
• More transit means less traffic
• Bike lanes make traffic worse
• A wider road is a safer road
• The next lane over is moving faster
• There's no downside to cheap gas
• Drivers pay the full cost of road maintenance
• And more!

Read the article to find out why these are myths. 

What Do Americans Buy With Their Saving From Cheap Gas? More Gas

Gas prices are fairly low right now. So what are you spending your savings on? The New York Times reports that a new study by the JPMorgan Chase Institute says most people spend it on more gas. And better gas.

The report, which aimed to look at the impact of lower gas prices on consumer spending, finds the average American would have saved about $41 a month last winter by buying the same gallons and grades of gas as they do when prices are higher. Instead, Americans took home roughly $22 a month instead. That's because they not only traveled by car more often but also bought the more expensive grades of gas.

So why did they do this? Researchers say people treat money as earmarked for particular kinds of spending. For instance, a certain amount per month is allocated to the mortgage, entertainment, gas, etc. If that amount isn't spent, people still seem to find a way to spend it in each category.

The JPMorgan looked at spending on gas between December 2013 and February 2014, when prices averaged $3.31 a gallon. They looked at the gas spending of the same one million people in the same time period one year later, when average prices were a dollar lower. Results say that the average American spent $136 per month on gas during the high-price period and $114 per month on gas during the low-price period. While the price of gas fell about 30 percent, spending on gas declined by only 16 percent.

How Much of Your Household Budget Goes to Gas?

I ride the bus to work when I can (some days I have meetings during or after work that I have to haul equipment to that requires me to drive), and made even more of an effort to do so when gas prices were up around $4 a gallon.

Not everyone changes their habits based on gas prices though apparently. Brookings reports that most people just continue with their daily lives- including their driving habits- and cut back in other areas to save money when gas prices increase. That's because many pick up kids, grocery shop, and do everything else by car and don't believe they have another option just because gas is more expensive.

The graph below (click toenlarge) shows the close correlation between the price of gas and how much the average American family spends on it, in comparison to other expenses. As you can see, the two pretty much move together.

The report also says that the amount spent on gas is a fairly small portion of all household expenses, representing only about five percent of total household spending.

You Think $1.69 Is Cheap For Gas? Try $0.002 A Gallon!

I filled my car's gas tank last night for less than $30, with the price being $1.69 a gallon. Cheap, right? At least compared to what we're used to. Well that is expensive to some people. In Venezuela, gas now costs about 0.2 cents (1/5th of a penny) per gallon. To put it in perspective- you cold buy 482 gallons of gas there for a dollar. So why so cheap? Bloomberg.com takes a look at the economy there and why gas is why less expensive than other parts of the world. And why it may not be for much longer.

Obama: Enjoy Cheap Gas Prices Cause They Won't Last

We've all known it all along but have been ignoring reality. President Obama, however, is not shy about raining on the parade by saying that low gas prices won't last.

In an interview with the Detroit News yesterday, the president advised people to save some of that money they're saving at the pump, or invest it in something that will help with family finances, and the environment, later- a fuel efficient vehicle. Here's that interview.

Gas May Be REALLY Cheap Now, But Comparatively, It's Always Been Cheap For Americans

While we've all been marveling at the recent low gas prices, one thing that's been overlooked is that, in a global sense, gas in the U.S. fuel has been cheap for years. Comparatively speaking.

On a list of world gas prices, America ranks towards the bottom, as seen in the chart below. Why? Citylab tackles that question and the answer is gas taxes. Didn't see that coming since we complain about how high Washington gas taxes are all the time, did you?

The Hummer Is Back, Thanks To Falling Gas Prices

The Hummer is back. Along with it's smaller cousins the Navigator, Expedition and other large SUVs. And it's all because of dropping gas prices. The Washington Post reports that sales of the Hummer off used car lots have picked up substantially in the past few weeks. Before that, they would languish on lots for long amounts of time due to the amount of gas they required. Analysts say the sales of other large SUV's are up too. Here's the Washington Post article.

Falling Gas Prices Encouraging Spending In Other Areas

Retailers are looking forward to what's expected to be a profitable holiday shopping season this year- because of gas prices.

Economists say falling gas prices are boosting consumer spending, which means more money for holiday shopping, which in turn results in economic growth.

The Spokesman-Review has current gas prices, and how long they're expected to stay low.

Gas Prices At Six Year High

Heading out of town for the holiday weekend? That's gonna cost you. AAA says U.S. gas prices are the highest they've been since 2008. $3.70 is expected to be the national average per gallon by July 4, but many places around here are already at $3.69 or above and I've seen as high as $3.80.

 According to this article by The Hill, the price hike is due to uncertainties in Iraq.

Gas Prices Going Up

According to the AAA auto club, the average price of a gallon of gas in Washington is $3.89. That’s up a penny in a week, 18 cents in a month, and it’s 21 cents higher than a year ago. That's also 22 cents higher than the national average.

The average price in Spokane is $3.61. As usual, Bellingham is highest in the state at $4.02.

Lots Of Holiday Travellers

I don't know what this place is,
but I want to travel there.

Leaving town after you get off work tonight? You're not alone. The AAA Auto Club says 34.8 million Americans will journey 50 miles or more from home during the Memorial Day travel weekend, a 0.9 percent decrease from the 35.1 million people who traveled a year ago.
During the travel period defined as Thursday, May 23, through Monday, May 27, AAA says nearly nine of 10 holiday travelers, or 31.2 million, people will drive to their destinations. That represents a small increase from the 31.1 million who drove a year ago.

Air travel will account for 7 percent, or slightly more than 2.3 million of all holiday travelers. That’s about an 8 percent decline from a year ago when 2.5 million flew. Other modes of travel—buses, trains, watercraft and multi-modal—will account for the remaining 4 percent—or 1.3 million travelers.

Gasoline prices are expected to have less influence on the majority of travelers this holiday, based on a nationwide survey. Sixty-two percent of intended travelers surveyed said gas prices would have no impact on their travel plans for Memorial Day. That compares to 53 percent a year ago.
Of the remaining 38 percent of travelers who said gas prices would impact their travel plans, 27 percent plan to economize in other areas. Eight percent are planning to take a shorter trip and 3 percent will travel by alternate mode of transportation.

Transportation Plan To Be Proposed Today In Olympia

The Spokesman-Review reports that a major transportation plan to be unveiled today in Olympia will propose a 2-cent-per-year increase in the state’s gasoline tax. The budget plan, from House Transportation Committee Chairman Judy Clibborn, D-Mercer Island, will divide the money between new projects and maintenance and eventually raise the state’s gas tax by a total of 10 cents.


Gov. Jay Inslee, who has said he wants a transportation package that would build new projects and fix some of its crumbling infrastructure, declined to endorse it Tuesday, saying only it is “a good start on that discussion.”
House Speaker Frank Chopp, D-Seattle, called the plan a major jobs package and said the plan would set aside significant amounts for maintenance. Previous gasoline tax packages have been criticized as emphasizing new projects and not leaving enough for ongoing road repairs.

Where Does Your Money Go When You Buy Gas?

So you know that every time you fill your car's gas tank, a certain portion of your money goes to a gas tax, the oil company gets some and the gas station ends up with a little. But how is it actually divided? The Union of Concerned Scientists (UCS) had that question and took a closer look and their conclusion; most of the money you spend at the pump goes directly to one place: oil companies.

A typical American spends more than $22,000 on gas over the lifetime of a vehicle purchased in 2011 with average fuel efficiency of 22.8 mpg. UCS says, of that amount, oil companies rake in about $15,000.

Where does the remainder go?
Here's the full article and some cool charts and graphs as well.

Gas Prices Dip Below $3 Some Places

Well, I wasn't completely sure I'd ever see this again, but $2.99 gas I did see a couple times this weekend around town. Despite that low price, the AAA auto club reports the average price of a gallon of gas in Washington is $3.38.


That’s down 2 cents in a week, but the same prices as a month ago. It’s 8 cents higher than the national average. The average prices in Spokane is closer to $3.06 though.

As usual, Bellingham has the highest average in the state at $3.50.

Highest/Lowest Gas Prices In Country

I saw a friend on Facebook post about how she got gas for below $3 per gallon, and she was pretty excited about it. Another friend posted that he got it for $2.85 somewhere in Coeur d'Alene. Although that's not the state average, it seemed really low, so I started wondering, is that the cheapest gas in the country? Turns out, no it's not. Utah has that claim to fame. KSL.com reports that the AAA of Utah lists the average price for regular, self-serve gas at $2.80 per gallon.

That's down a cent from last month, but still 22 cents higher than this time last year. Wyoming comes in second with a statewide average of $2.91 a gallon. The national average for gas is $3.09 per gallon.

Hawaii has the highest prices in the country, at $3.69 per gallon.

Gas Prices Around WA

The AAA auto club reports the average price of a gallon of unleaded gas in Washington is $4.16!


That’s down 12 cents in a week and is 62 cents higher than the national average.

The AAA survey shows these gas prices from around the state:

Bellingham $4.31
Bremerton $4.13
Seattle-Bellevue-Everett $4.22
Tacoma $4.14
Olympia $4.15
Vancouver $4.12
Yakima $4.17
Tri-Cities $4.09
Spokane $3.93.

Gas Prices Not Expected To Set Summer Record- But Close

Here's some good news for you, kind of; Gasoline prices likely won’t set any records this summer- but it will come close.  


The government yesterday slashed its forecast for average gas prices to $3.79 per gallon for the summer driving season. That’s down from an initial estimate of $3.95 and below 2008’s record average of $3.80.

The Spokesman-Review has the story.

WA Gas Prices Up 6 Cents Since Last Week

The AAA auto club this morning is reporting that the average price of a gallon of gasoline in Washington is $4.07! That's up 6 cents from last week and 25 cents from a month ago. It's also 17 cents higher than the national average.

The average price in Spokane is currently $3.82 That's not terrible though considering a AAA survey from yesterday shows an average of $4.22 in Bellingham and $4.13 in the Seattle-Bellevue-Everett area.

Some Ways To Save On Gas That I Haven't Heard Before

You've probably heard most of these before, but with all the complaining going on about gas prices, I thought it was time to post tips on how to save money on gas again.

Many are common sense such as slowing down and not idling if you can help it, but did you know that every five miles per hour you drive over 60 costs you an additional 24 cents per gallon? Or that you should fill up your tank on Wednesday because gas prices usually go up on Thursday? And usually you're told NOT to use credit cards, but in this case you're encouraged to use gas cards due to the incentives they offer. As long as you pay them off quickly, of course.

Okay, so hope this helps a little anyway.