We rekindled our love affair with road trip vacations in 2001 when our son was finally old enough to endure 3 days of driving at a time, and we were able to afford more dependable transportation. Instead of our usual 2 hour drive to some favorite State Park for 2 weeks of camping, we graduated to visiting various National Parks out west. It has been great.

Because of our road trip habit, I've payed attention to gas prices. Beginning in 2001, when prices spiked in late spring, I would wring my hands with everyone else and worry how high they would go by August (the time of our departure.) But it seemed every year, gas prices went down about 40 - 50 cents/gal by the time we hit the road. (Good reason to plan your driving vacation late in the summer.) Photo shows $3.79/gal on July 25, 2008 at Speedway on Greenfield and Sunny Slope Road, that is about .50 cents lower than earlier highs this summer. 

Experience taught me to not fret too much about what would prices be by the end of summer? I would assure myself the price would come down later in the summer, and they did. Unfortunately, the lower price of August was usually .25 to .50 cents/gal higher than the year before! 

I checked my travel journal for some past August price examples*. You can see the prices increases nearly every year:  2003 - $1.59/gal, 2004 - $1.83 to $1.93/gal, 2005 - $2.53 to $3.47/gal (California' price), 2006 - $2.99 to $3.19/gal, 2007 - $2.85 - $3.09. Notice the prices in 2007 were cheaper than 2006, but that was the exception to the norm.

The AAA agent told me Monday, the price this summer is $1.19 higher (nationwide) than last year's gas prices. That is a higher jump from years past. Some other market forces are at work.

USA Today attributed the oil prices drop to fewer miles driven in, Cost at pump dips as demand, oil prices fall,

Drivers in the USA logged 9.6 billion fewer miles in May than in May 2007, the government reported Monday. It was the third-largest monthly drop in 66 years.

But to me, that alone cannot account for the downturn in oil prices. If you look at the graph to the left, you see that oil prices started declining more steadily around the time the President announced he was removing the moratorium on offshore drilling. I believe if the Congress would approve domestic drilling, we would see more declines. 

If you look at the chart from this 2nd article, US drivers Log 9.6 B fewer miles in May, you see that Americans have been driving significantly less all year. May did not even mark the largest downturn, March did. If the price of oil was so dependent on driving alone, March's decline should have triggered a crude oil price reduction, shouldn't it have?

The data released Monday show that Americans drove 29.8 billion fewer miles in the first five months of this year compared with the same period last year, a 2.4% drop. The dip continues a seven-month trend beginning in November. Americans have driven 40.5 billion fewer miles from November through May compared with the same period a year earlier.

I believe we must start drilling in America if we want to see oil prices really decline. (Domestic drilling would also keep  billions of US $ at home, but that is another subject!) We are on a hair trigger as it stands now, where any natural or man-made disaster could push prices up. 

Unrest in non-OPEC countries, such as Nigeria, could push prices higher. Militants in that country sabotaged two oil pipelines Monday, driving crude prices for September delivery up $1.47 a barrel. A major hurricane in the Gulf of Mexico also could send oil prices higher.

"We could always have a spike to $150 a barrel," Smith says.

For right now, we can relax just a tiny bit and enjoy the typical price decrease of .40 to .50 cents/gallon in August. Too bad it is still .70 cents a gallon more ($1.19 nationwide) than last year!

*In 1979 gas prices were under 50 cents a gallon in the early summer! (Good thing.This was our 5 1/2 week, 8,000 mile Way Out West camping trip.)

Click here to sign the DRILL HERE. DRILL NOW. PAY LESS domestic drilling petition and see the latest links to related oil news (updated every day).

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Remember the billboards that said IT was coming in 2001? The IT was the Segway, a "two-wheeled self-balancing vehicle that runs on a rechargeable battery." Although Steve Jobs and others "predicted it would change the way people lived," the IT came and at the time, it wowed the public about as much as the Edsel.

But times have changed since 2001. Gasoline prices are now higher--a fill up for our minivan then cost $35, today it can cost $80. People are looking for alternatives.

Segway Glides as Gasoline Jumps the Wall Street Journal reports. Obviously, this is not the solution to high gas prices for Wisconsin residents, but the article mentioned a few Segway owners who thought Segways made sense. (Maybe I should say, cents.) 

Scott Hervey of Yorba Linda, Calif., bought one of the electric scooters on June 7 and has put 150 miles on it commuting to his custodian's job at Disneyland, about 12 miles away. He had considered buying a Segway for four years, and gasoline prices finally drove him to do it. Now he "glides," as Segway enthusiasts say, to work. "I like passing gas stations," says the 54-year-old.

Segway's cost around $5,000 each. The user must be fairly agile and willing to expose themselves to the elements--and neighborhoods. Then there is the question of, where do you ride it? Sidewalk or street? Some communities ban them from sidewalks.

We were at Disney World the first year the Segway was released, so we saw them in action. Both my husband and son wanted one.  For specific uses, especially in large factories or businesses, I can see where they would be handy, quiet, and because they emit no exhaust, can be used indoors. I'm not sure they are the perfect commuting vehicle though. But it seems some people would disagree:

Sales at the scooter's maker, Segway Inc., have risen to an all-time high, says CEO Jim Norrod. The closely held Manchester, N.H., company doesn't release detailed numbers. (A September 2006 recall showed the company had sold 23,500 Segways.) But Mr. Norrod says he expects sales this quarter to jump 50% from a year earlier, versus a 25% year-over-year increase in the first quarter.

Among the new customers are local governments and universities whose budgets have been pinched at the gas pump. New York's Syracuse University and the University of Kansas say they bought Segways for their campus police this year, in part because of rising gasoline prices.

As gas prices continue to climb, some people will be looking at creative ways to ease their pain at the pump. I would think those motorized bicycles that the police and parking lot security use would gain in popularity too. Maybe people will finally decide a 30 mile commute to work is not the best idea. (In that case, Brookfield real estate should become more attractive because we are so close to the city.) But for the gizmo-loving customer with a large wallet in a temperate climate, the Segway may finally have hit its stride.

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Sunday we returned from a few days in Dearborn Michigan touring the Henry Ford Museum, Greenfield Village, and The Rouge Ford Factory. The Rouge Factory Tour was new to us. There was Bill Ford, the great grandson of Henry, up on the BIG screen telling us how Ford created this new Rouge factory to be friendly to the environment.

Much like our proposed Fountain Brook Crossing, The Rouge Ford Factory* has Gone Green. The roof is a garden roof, planted with sedum plants to absorb the rain water. They are increasing plantings wherever possible on the grounds; nets are strung up on the factory exterior for climbing vines.

Even their parking lots are water permeable. No more run-off. The paving material looks like asphalt but is a porous material that has sand and gravel below. The guide said that the water that runs through the pavement is filtered and very clean. It requires vacuuming twice a year to keep pores open and calcium chloride must be used instead of sodium chloride in winter.  The porous pavement is more expensive to install and maintain but lasts twice as long as conventional asphalt. Plus, no detention pond is needed...and it's good for the environment.

It seemed everything about The Rouge Factory was good for the environment or good for the employees. You could watch some of the assembly line in action. The workers were poetry in motion each doing their specific little jobs. While they are always under the time constraint of the moving line, it did not seem any were really hustling to keep up the pace. Some workers were on the cell phone, playing a hand held game, or even had newspapers there to catch a snippet of an article.

I asked a tour guide how much money these people made. She did not know specifically but said from what she read in the paper, it was around $20.00 per hour for new hires. Workers with more seniority were higher.

Another guide told us that Ford recently closed 2 other factories in other states, I believe, and now consolidated all of the work here at The Rouge. That sounded efficient. The Rouge's specialty was trucks**. Wonder where the other cars are made?

Monday's Investor's Business Daily answered part of that question: Movin' To Mexico!:  (My emphasis)

Ford's investment of $3 billion in two auto plants near Mexico City is the largest foreign company investment ever in Mexico. As oil prices soar and new climate-change rules are readied in Washington, Ford must shift from its reliance on trucks and SUVs to lighter, more energy-efficient vehicles.

This should be something that workers in Michigan and other Midwestern states with decades of automaking experience should excel at doing. Instead, Ford and other automakers are pushing more and more investment abroad — especially to Mexico.

The editorial cites reasons for an auto sales slump and the US losing jobs--mainly the UAW forcing higher wages and benefits--but increasing climate change rules and higher oil prices aren't helping the industry.

Like a coyote caught in a trap, U.S. automakers have been desperately gnawing off a leg to escape certain death. They're closing plants and slashing jobs in Michigan, Ohio and other U.S. union havens, in favor of non-union, foreign places. Like Mexico and China.

Meanwhile, foreign companies have no problem making cars here. They do it in the non-union South, where the UAW is weak.

So foreign companies can get around our high wages by being non-union, but even they and their products are subject to U.S. emission standards for factories and cars.

You would think that with our ailing auto industry our government would be doing all it could to help encourage instead of hinder. Yet Washington continues to hamper oil exploration and increase auto emission standards (i.e. new diesel emissions will be cleaner than intake air.) 

Add to automakers woes, both U.S. and foreign made here, the latest millstone around the neck: Cap-and-Trade, and I think we have the recipe for outsourcing more industry of all kinds.

Ford may have greened up its Dearborn plant and created an ideal work environment, but if more industry follows suit in exporting jobs to countries that don't care about workers or the environment, what good paying jobs will be left in America?

This was written before Tuesday's post Kohl, Feingold, and Doyle's reaction to GM closing Janesville plant

Related articles: Toyota workers in Kentucky plant made more than UAW members last year

More handwriting on the wall, GM closing Janesville assembly plant by 2010 

*The Rouge Factory was named for the Rouge River in Dearborn. The banks of the river were red clay, hence the name Rouge (French for red). 

**A guide told us this was the last year they would be making Mercury trucks. 

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Last night I heard Senator Inhofe (R-Oklahoma) on the Mark Levin Show.  They were discussing S. 2191, the Senate "Lieberman/Warner Global Warming Bill and the disastrous effect this would have not on just the country as a whole, but the individual." (My emphasis throughout post.)

Wall Street Journal referred to Cap-and-Trade as Cap and Spend

As the Senate opens debate on its mammoth carbon regulation program this week, the phrase of the hour is "cap and trade." This sounds innocuous enough. But anyone who looks at the legislative details will quickly see that a better description is cap and spend. This is easily the largest income redistribution scheme since the income tax.

The Washington Post said, Just Call It "Cap-and-Tax" 

"...One of the bad ways [to control greenhouse gas] is cap-and-trade. Unfortunately, it's the darling of environmental groups and their political allies.

The chief political virtue of cap-and-trade -- a complex scheme to reduce greenhouse gases -- is its complexity. This allows its environmental supporters to shape public perceptions in essentially deceptive ways. Cap-and-trade would act as a tax, but it's not described as a tax. It would regulate economic activity, but it's promoted as a "free market" mechanism. Finally, it would trigger a tidal wave of influence-peddling, as lobbyists scrambled to exploit the system for different industries and localities. This would undermine whatever abstract advantages the system has.

...Call this "environmental pork," and it would just be a start. The program's potential to confer subsidies and preferential treatment would stimulate a lobbying frenzy. Think of today's farm programs -- and multiply by 10.

After listening to Senator Inhofe, I think we could also refer to it as Cap-and-Raid! If it passes, it will raid every worker in America's wallet!

Senator Inhofe said, Senator Barbara Boxer insists this is not a tax bill. But if you have looked into the bill itself and at the linked articles, it is difficult to understand how this could not be considered a tax bill.

Inhofe then quickly listed some points to ponder. He mentioned the Wall Street Journal referring to it as the most extensive reorganization since the 1930s. He called it worse than the Kyoto Treaty for the economy. Cap-and-Trade will need 45 more Big Government Bureaucracies to enforce the standards.

Using Boxer's figures, Inhofe pointed out that Cap-and-Trade would collect $6.7 Trillion dollars from industry (those costs will be passed onto us!). The maximum rebate to customers is $2.5 Trillion dollars. Do the math: That means $4.2 Trillion goes where?

That sounds like a tax to me!

He went on to remind us that the Democrats have killed every domestic drilling bill. The US relies on coal for 53% of all of its electricity production. Cap-and-Trade will tax coal fired electricity production. Consider that China "cranks out a new coal electric plant" every 3 days (?). (I think he said 3 days, which fits with this - certainly between India and China it would be true.)

Manufacturing jobs will go where there is (cheap) energy/power, Inhofe said. This is also what Congressman Sensenbrenner talked about at his Town Hall Meeting when he called Cap-and-Trade "Catastrophic for Wisconsin". I would add that manufacturing jobs will also go where environmental regulations are more lax.

Senator Inhofe suggested people take a look at Liberman-Warner Opposition Resource Center; Impacts of Costly Climate Bill Exposed  It is chock full of quotes, links and articles.

The Senate is debating this bill this week. While some say the bill will not pass, as you know, once the foot is in the door, the issue will not go away.  Considering all 3 Presidential candidates support the concept of Global Warming, I would just say, the bill probably won't pass...yet.

Our Senators' response to my emails: Not much hope of a NO vote here--unless they feel the heat from constituents.

This is important! Please contact them both: Senator Kohl (Phone: (414) 297-4451, (202) 224-5653) and Senator  Feingold (Office of Senator Russ Feingold | 202/224-5323) and let them know what you think about this bill.

More reading:

George Will's Cap-And-Trade: A Devious Tax Plan

Good chart of key players and terms explained at end: Senate taking up key climate-change bill 

The Heritage Foundation's Morning Bell: Carbon Capping in Bizarro World 

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Question: Who is the number 1 oil producer? Number 2? Number 3?

Do we have the right to sue any of the top 3 for not producing more or setting prices? 

If you said yes, that would include suing the United States. We are the number 3 oil producer in the world*.

"Congress' latest answer to rising gasoline prices: Sue OPEC .(LA Times)"  -What about counter suit? What if OPEC sues the U.S. for not pumping all of the oil deposits in our own country? Isn't it ridiculous that we don't pump the oil off of our shores for environmental reasons, yet Mexico just to our south does?

What about an OPEC lash back? Do we really want to poke a stick in the eye of our major oil suppliers? (One of my nicknames is Cautious Kyle.) The President must think so too, "The White House warned that the measure could invite retaliatory action by the oil cartel, which supplies about 6 million barrels of crude to the United States every day."

Just imagine what our economy might look like if we were pumping from all of our own known deposits and kept our oil dollars home? Or on the darker side, just imagine what what our economy would look like if OPEC decides to sell elsewhere? From the L.A.Times:

Rep. Steve King (R-Iowa) scoffed at the measure, arguing it was "long on psychic compensation" but unlikely to bring down gas prices. He assailed Democrats for blocking efforts to increase domestic oil drilling, complaining that the bill "doesn't outlaw the congressional cartel that has blocked our energy production in this country."

"Even if this bill gets vetoed, which I believe it will, we're sending a message over to the OPEC countries that we want to litigate," King said, warning of possible reprisals.

OPEC could speed the flow of oil to the market, King said. "Or they might just decide, a little bit out of spite, to turn the spigot down a little bit to say, 'We'll show you.' "

Maybe we should sue Congress for blocking US drilling attempts? 

*Top 10 oil producers: Saudi Arabia, Russia, US (first 3 each produce almost 2X or more than the following), Iran, China, Mexico, Norway, Canada, Venezuela, United Arab Emirates.

Past Post: Can We Just Start Drilling Now? 

Don't forget the Music Concert to Benefit Chinese Quake Victims, Saturday, May 31st, 10AM - 1PM, Brookfield Civic Plaza

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