High Energy Prices Threaten a Lot of Things
by
revrick
07/11/2008, 5:12 PM #
So why does Chadwick Matlin focus our attention on what is, as his own data shows, an admittedly tiny fraction of total personal transportation?
Zipcar may be a neat idea, but its success or failure is, by no stretch of the imagination, either a dealmaker or a dealbreaker. Its members are about 1% of adults licensed to drive in the US, and by the very nature of its business, is confined to urban settings, where alternative means of transportation exist. Zipcar barely registers on the radar screen of transportation in our nation.
As this article in the NYT reveals <link># , the effects of high energy costs are not uniformly experienced. While Zipcar may get squeezed by higher fuel costs, which are a small fraction of the cost of the purchase, maintenance and insurance of the vehicles in its fleet, people in rural areas are getting hammered. And adding to their woes are the closing of gas stations in their towns, forcing residents to drive considerable distances to fill up their tanks.
Former Gov. King of Maine has said that if oil hits $300/barrel, Maine will become a vast national park, because no one could afford to live there. During an average Maine winter, most residents fill their 200-gallon heating oil tanks six times. If heating oil, which now goes for about $4.40/gallon, goes to the $10/gallon range, that means the winter heating bill will hit $12,000! That's far more serious than the fate of Zipcar.
Independent truckers are going belly up because of diesel prices. The cost of growing food is soaring because of diesel prices (for tractors and irrigation pumps). School budgets are being strained because of diesel prices.
But Matlin chooses to talk about Zipcar.