US starting to peak in gasoline demand?
I just posted on Memebox FutureBlogger about a recent CERA forecast on the potential plateauing of US gasoline demand inthe next 10-15 years - possibly in 2010.
How can demand peak so soon?
Because sustained high energy prices are forcing the auto industry to increase efficiencies and move beyond the combustion engine as we electrify the industry around electric motors powered by batteries and fuel cells.
This has tremendous implications for both the auto and energy industries- since oil will no longer be the only fuel for the transportation sector. The key is moving beyond the combustion engine platform towards electric motors.
It also raises challenges with state transportation agencies and the federal government since we fund public roads based on each taxes on a gallon of gas. More efficient vehicles means less money to road agencies - even though demand based on per mile could remain strong.