Why in the world would I trade in a truck that's paid for only to borrow money to buy a new truck with better gas mileage? That's like trading in my wife for one that's a better cook. I may get what I want, but it'll cost me a lot more ;-) - and No, my wife will never read this, lol
Seriously, I remember the first gas lines during Carter's presidency. You had to buy a foreign car to get good gas mileage, and people did. I came back (as I suspect others did) to US made cars when they started getting the mileage, reliability, and style right. Cars and trucks will evolve and we'll move toward them. My 61' Willy only got 8mpg and it was a 6-cylinder!
IMO, we don't need the government pushing us to borrow more money to buy a car just for more mpg, we have enough debt now. I'll run my truck until it won't run, then I'll look for my next truck and mpg will be a factor, so will 4x4, A/C, safety, etc.
I tend to think oil speculation is a big factor. As one oil trader put it,
http://www.thereformedbroker.com/20...half-the-price-of-oil-is-speculative-premium/ , perhaps to the tone of $40/barrel or more.
From
http://www.philstockworld.com/2012/02/14/oil-myths-the-hedgeye-rebuttal/
'According to a recent paper by the Federal Reserve Bank of St. Louis titled, “Speculation in the Oil Market” (Juvenal and Petrella), it has been “estimated that assets allocated to commodity index trading strategies rose from $13 billion in 2004 to $260 billion as of March 2008”. This paper concludes:
“Our results confirm that Kilian’s (2009) conclusion that global demand shocks as the main drivers of oil fluctuations remains robust. In addition, we show that speculative shocks are the second most important driver of oil prices.”'
IMO, the rolling of futures contracts until the price is "right" is a problem. In the links you'll see the speculation is often by investment groups that don't do anything with oil except trade it up for a better price. I'd like to see the government require oil contracts to require the buyer prove they can take delivery in 30 days or loose their "investment".
One thing I don't think Americans can continue to do is tell the rest of the world to drill every gallon you can so we don't have to. Until technology replaces oil, we need to be working as hard to get oil from here as they are from there. We're "farming" gas from dumps, natural gas, etc., I just don't see us that far away. T.B. Picken's push to move commercial trucking to CNG seems like a good start. I remember when 18 wheelers were about all that used diesel, now diesel is everywhere. Perhaps the same thing could happen with CNG.
Obama's not wrong about making your car run better, but we're not going to "save" our way out of a gas/oil future.