The United States currently consumes more gasoline than the next 16 countries combined. Yes, you read that right. Among them are China, Japan, Russia, Germany, and Brazil.
But now this is changing. Not only is the affluence that sustained this extravagant gasoline consumption eroding, but the automobile-centered lifestyle that was considered part of the American birthright is fading as well. U.S. gasoline use has dropped 5 percent in four years.
Four key developments are set to further reduce U.S. gasoline use: a shrinking car fleet, a decline in the miles driven per car, dramatic mandated future gains in new car fuel efficiency, and the shift from gasoline to electricity to power our cars.
The U.S. fleet appears to have peaked at 250 million vehicles in 2008. From 1994 through 2007, new-car sales were in the range of 15–17 million per year. Since then they have totaled 10–13 million per year, and they are unlikely to top 14 million again. Retirees likely will exceed sales of new cars throughout this decade.
The contraction that began when the fleet dropped from 250 million in 2008 to 248 million in 2010 is likely to continue. Sales of new cars are not matching those of earlier years in part because the economic prospect has dimmed and in part because we are still urbanizing. Today 82 percent of us live in urban areas where cars are becoming less essential.
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