Tag: gasoline prices

Revving Up Sales of Cleaner Diesel Cars

When you think of diesel engines, you might think of big, noisy, stinky trucks. But that’s changing. And a domestic automaker has plans to bring a cleaner, higher performing diesel engine to passenger cars. The company insists: it’s not your father’s diesel. The GLRC’s Julie Halpert has the story:

Transcript

When you think diesel engines, you might think of big, noisy, stinky
trucks, but that’s changing and a domestic automaker has plans to bring a
cleaner, higher performing diesel engine to passenger cars. The
company insists: it’s not your father’s diesel. The GLRC’s Julie Halpert
has the story:


In Europe… people have been hearing this catchy little tune on a
television commercial…


(Sound of commercial)


If you hate something, improve it. That’s the message of this Honda UK
commercial that highlights the historically loud, smelly diesel engines.
It’s intended to promote Honda’s new, cleaner diesel, something it’s
launching in Europe.


Diesels have always been more popular in Europe than the U.S. That’s
because there diesel fuel is roughly 20 to 30 percent cheaper than
gasoline there, and diesels get great fuel economy… 30 percent better
than in gasoline engines.


Here in the U.S., diesels haven’t sold well. In the 1970s, when diesel
fuel was cheaper than gas, diesels gained in popularity briefly, but people
didn’t like the stench of the smoky fumes and the clunky sounds of diesel
engines. Those lingering attitudes have scared Honda off from bringing
its new diesels here.


But Daimler/Chrysler is trying to change all that. The company is
drawing on its European expertise to bring advanced technology diesels
to more U.S. passenger cars, and now, they think Americans will buy
them.


Jim Widenbak is a manager of small diesel systems for Daimler/Chrysler.


“We think that there’s a niche for diesels in the North American market,
and We’re not sure exactly how big, but I would characterize us as kind
of bullish on diesels. We really think there’s a place for them and
that customers will ultimately be very happy with diesel products.”


Daimler/Chrysler currently offers a diesel engine on its newer models of
the Jeep Liberty and the Mercedes E-320. Sales of these vehicles were
more than double what the company expected – 10,000 for the diesel
Jeep Liberty and 5,000 for the E-320.


Widenback says that electronic controls have improved over the past 30
years, making diesels better performing, more fuel efficient and cleaner
burning.


The company is in negotiations with the Environmental Protection
Agency to use a new technology, currently in use in Europe, that cuts
pollution further – just in time for tough new federal emission controls
that take effect by 2008. The process uses a material called urea that’s
injected into the exhaust before the exhaust hits the pollution control
device. This ultimately removes troublesome emissions of nitrogen
oxides.


There is one problem with the pollution control system, though.
Anthony Pratt directs power train forecasting for J.D. Power Automotive
Systems. He says the car periodically will run out of its supply of urea.


“So, in other words, you’re not getting the injection of urea in the
exhaust, the vehicles will continue to perform normally as if the urea
tanks were full but they will not meet the more strict emission
standards.”


If the company finds a way to ensure the tanks stay full, Pratt thinks it
will work. Pratt projects diesel engine sales will grow from 3 percent of
the market in 2005 to seven and a half percent in 2012, overtaking sales
of hybrid vehicles, which are only projected to be 4% of the market.


“I think the vehicle manufacturers will be successful in ultimately
educating the consumer in that the new diesel technology is not the dirty,
clanky, loud and sluggish technology they may be familiar with from the
late 70s and early 80s.”


(Sound of car dealership)


That message – that diesels are worth buying – is falling on deaf ears for
the customers of Schultz Motors. Tyler Shultz, the general manager, doesn’t
think it will fly, based on what he’s seen.


“As diesel prices went up in the last six months to a year, we virtually
have lost interest. Again, it’s not that the consumer doesn’t want it, but
when they see fuel prices go above gasoline prices, it was almost like
somebody flipped a switch.”


Shultz says it’s too expensive to buy and maintain a diesel and customers
won’t recoup the cost savings from better fuel economy unless they own
their car for several years. He, and some other dealers in the area don’t
think diesels will ever become popular.


Daimler/Chrysler’s Widenbak disagrees. He expects those fuel prices to come
down, and as they do, he says people will start buying diesel vehicles.


“We’re confident that our vehicles, diesel vehicles in general and our vehicles
specifically, can appeal to people.”


Daimler/Chrysler is so confident, it expects to roll out diesel engines in
more of its passenger cars over the next few years.


For the GLRC, I’m Julie Halpert.

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Epa to Tune Up Fuel Economy Estimates

The Environmental Protection Agency is proposing to change the way it calculates fuel economy estimates on the window stickers of new cars and trucks. Consumer and environmental groups have been arguing that the estimates don’t match up to real world driving. The Great Lakes Radio Consortium’s Rebecca Williams reports:

Transcript

The Environmental Protection Agency is proposing to change the way it
calculates fuel economy estimates on the window stickers of new cars
and trucks. Consumer and environmental groups have been arguing that
the estimates don’t match up to real world driving. The Great Lakes
Radio Consortium’s Rebecca Williams reports:


The current EPA tests assume cars and driving conditions are the way
they were in 1985. The tests don’t factor in air conditioning, driving in
cold weather or driving any faster than 60 miles an hour.


The EPA says the new methods will lower the miles per gallon estimates
on most vehicles. The city estimates for conventional cars and trucks
could drop 10 to 20 percent. For hybrids, the city estimates could drop
up to 30 percent. A hybrid’s fuel economy is more sensitive to cold
weather and air conditioning.


Consumer groups say the new tests will give buyers a more accurate
picture of the car they take home.


Susan Pikrillidas is with AAA.


“We do honestly and truly believe that accurate labels will cause people
to buy more fuel efficient vehicles particularly in light of the high
gasoline prices.”


Under the proposal, the new test methods will begin with 2008 models…
so you could see the new stickers on cars as soon as fall 2007.


For the GLRC, I’m Rebecca Williams.

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Proposed Pipeline Divides Community

A Findlay, Ohio-based oil company says it needs a new petroleum pipeline to help get gasoline and jet fuel products to market in the Great Lakes states. But Marathon-Ashland’s proposal has sparked opposition from environmentalists and some small business owners in Southeast Ohio who fear possible contamination of waterways and disruption of some pristine areas. The Great Lakes Radio Consortium’s Tom Borgerding has the story:

Transcript

A Findlay, Ohio based Oil Company says it needs a new petroleum pipeline to help get gasoline and jet fuel products to market in the Great Lakes states. But, Marathon-Ashland’s proposal has sparked opposition from environmentalists and some small business owners in Southeast Ohio who fear possible contamination of waterways and disruption of some pristine areas. The Great Lakes Radio Consortium’s Tom Borgerding reports.


The proposed 149-mile long pipeline will cross the Ohio River from Kenova, West Virginia and snake through parts of the Wayne National Forest and scenic Hocking Hills in Southeastern Ohio and South Central Ohio. Company spokesman Tim Aydt says the project will help stabilize gasoline prices in a region stretching from eastern Illinois to western New York.


“The existing pipeline infrastructure that serves us today is decades old and it was designed when there was only one grade of gasoline and one grade of diesel fuel. And it was designed to serve a population about half the size it is today. Over time, with the growth we’ve had in the Midwest we’ve outgrown that pipeline capacity and as a result we’ve witnessed the last two summers where we’ve had constrained supply that’s resulted in price spikes.”


The pipeline might help stabilize gasoline prices in the region by adding a second source of supply for refined petroleum products. Currently, The Great Lakes region is dependent solely on pipelines running out of refineries in the Gulf Coast states such as Louisiana and Texas. But, Marathon-Ashland’s proposal also presents a potential environmental risk. The pipeline will cross 363 streams, 55 wetlands, and parts of three watersheds. For some, the prospect of a pipeline carrying gasoline and jet fuel through environmentally sensitive areas has sparked fears. Jane Ann Ellis is a founder and trustee of Crane Hollow…. a privately owned, dedicated state nature preserve in the path of the pipeline.


“If this pipeline would be built and if there was any kind of leak this would decimate the clean water that we have. It is easier to keep your drinking water clean than it is to clean it up afterwards. And it’s cheaper in the long run for the general public.”


Michael Daniels also opposes Marathon-Ashland’s project. He owns a country inn that attracts tourists from Ohio and surrounding states. He says many of his customers come to the region to hear chirping birds, babbling brooks, and to see the fall foliage. Daniels says both construction and operation of the pipeline will have a negative effect on his business.


“Certainly! Who would want to come as a tourist and be exposed to that kind of noise and intrusion into their experience? So, there’s no question that it will impact my business.”


But company spokesman Tim Aydt says the pipeline route through parts of a national forest and other environmentally sensitive areas is the best possible route.


“We wanted to avoid population centers. We wanted to avoid residential or commercial developments and we wanted to avoid flood plains where we could. So, when all of that was put into the mix we came up with the best route overall. Obviously it’s not the cheapest route because it’s not a straight line between two points. But, about 80 percent of the route follows existing utility corridors or those areas that are less prone to development.”


Marathon-Ashland says without the pipeline the Great Lakes could soon face shortages of gasoline, lines at the pump and greater fluctuations in gas prices. The tension between the company and pipeline opponents turns on the question of whether Marathon-Ashland will be required to submit an “environmental impact statement.” The U.S. Army Corps of Engineers is expected to make that decision early this year following a recommendation from the Ohio Environmental Protection Agency. Corps spokesman Steve Wright says there’s no question such a requirement will delay the project.


“That will take longer. You know they take varying lengths of time but certainly they can’t be done very quickly.”


Marathon-Ashland contends an environmental impact statement (EIS) is unnecessary. But, opponents of the plan say the EIS is critical since the pipeline puts so many streams and wetlands at risk for potential pollution.


For the Great Lakes radio Consortium I’m Tom Borgerding

Stocking Up in the Face of Danger

  • Prices spiked at some gas stations around the region after September 11th, and many drivers felt compelled to wait in long lines to fill their tanks.

Despite the patriotic fervor that has marched across the country, the first test of the war against terrorism found many Americans taking a “me first” attitude. When rumors were flying that gasoline shipments might be disrupted, people lined up to fill up their tanks before supplies dried up. The Great Lakes Radio Consortium’s Lester Graham has more:

Transcript

Despite the patriotic fervor that has marched across the country, the first test of the war against terrorism found many Americans taking a “me first” attitude. When rumors were flying that gasoline shipments might be disrupted, people lined up to fill their tanks before supplies dried up. The Great Lakes Radio Consortium’s Lester Graham reports.


On September tenth, the Energy Department reported that gasoline prices fell almost two cents per gallon. It was the first drop since early August and nearly three-and-a-half cents a gallon cheaper than the same time last year. Supplies of gasoline were plentiful and cheaper, but no one seemed to be in a particular hurry to filler up.


That all changed on September eleventh.


“… breaking news from New York City where planes, two planes have hit both towers of the World Trade Center in lower Manhattan” (voice fades under)


As the terrorist attacks in New York and Washington D-C unfolded rumors of refineries shutting down started circulating. Some suppliers told service station retailers that they weren’t sure when or even if they could deliver the next shipment. Word quickly spread that the price at the pumps was going up.


(Natural sound of service station)


Sharon Cameron lives and works in a small town in Illinois. She heard from a co-worker that the price might go up to five dollars a gallon. When she got near the convenience store. She found a long line of cars and trucks.


“I had about a 35 minute wait to get gas.”


And some in line weren’t happy about what they saw in front of them.


“There was a gentleman that was pretty upset because another guy had pulled his truck in there and had filled up both tanks on his truck and then proceeded to fill up about five or six gas tanks in the back of his truck.”


People appeared to be hoarding gasoline because of rumors that speculated supplies would be cut off because of the terrorist attacks.


Some retailers took advantage of the situation. Scott Mulford is a spokesperson for the Illinois Attorney General’s office. He says about 1500 people from around the state called in complaints that stations were price gouging.


“Prices at the stations increased in some cases as high as five dollars a gallon.”


The Illinois Attorney General is filing suit against one convenience store chain, charging that the price spikes violated the state’s Consumer Fraud and Deceptive Business Practices Act.


Other states in the Midwest had similar incidents. Ohio is filing suit against at least four station owners. There were reports of price gouging in Wisconsin. The Michigan Attorney General has plans to file suit against 13 retailers. Some retailers say in their defense that it wasn’t greed that motivated them. But concern about gas supplies. Some of those gas station owners who hiked prices on September eleventh say they were simply trying to discourage a mad rush for gasoline by raising the price. Stanley Pruss is with the Michigan AG’s office.


“There was something of a panic. There were gas lines. The gasoline station retailer can close down, limit hours, ration gasoline, or spike the price or raise the price to control demand. I mean, those are all options within their purview. Price increases to control demand that double the price of gas are just unconscionable.”


Pruss says it’s somewhat understandable that people wanted to rush to fill their tanks when they heard that gas prices were going up to five-dollars-a-gallon or that supplies might be disrupted.


A marketing professor at the University of Illinois says it’s to be expected. Brian Wansink says instead of conserving in times of crisis. Americans have a tendency to stock up. “Just in case.”


“Any time there’s a crisis or any time that uncertainty is magnified in one direction or another, this basic tendency that we have gets expanded, you know, two, three, or even four-fold.”


Wansink says part of this tendency is a leftover from another national crisis, the depression. He says our parents and grandparents who lived through the Great Depression in the 1930’s have instilled in us the stories of their terrible struggles.


“About how, you know, they only had bread to eat, and how things were really, really tight, and how dire things were. And so, there’s essentially this trace in our mind that ‘My god, things could be really, really bad and I don’t know.’ And I think it’s this threat that drives some of this hoarding also.”


So, storing up or hoarding is part of our culture. At least this time the impulse to hoard gasoline was short-lived. The lines dwindled in just a few hours. Hiked prices were lowered to more reasonable levels by the next day. Hoarding quickly gave way to an outpouring of generosity toward relief efforts for the victims of the terrorist attacks. It’s evident that Americans have another tendency: that is, to pull together in times of tragedy. After they’ve had a little time to reflect on the bigger picture.


For the Great Lakes Radio Consortium, this is Lester Graham.