Here’s why the EPA’s new minimum of 35.5 miles to the gallon by 2016 means nothing, according to oil prophet Jeff Rubin.
First, Americans always find a way to increase consumption to keep up with increased efficiency, Rubin says:
Your engine may be a lot more efficient that your dad’s old gas-guzzler from the 1970s, but chances are you burn just as much gasoline on the road over the course of a year as he did. You, like your fellow North American drivers, eat up all the energy efficiency gains made in engine and materials technology over the last 30 years by driving ever-larger, ever-faster vehicles loaded with more and more energy-consuming features. And to top it all off, you drive your vehicle about a third more than your parents did, in large measure because you commute so much further every day than they did.
Second and more importantly, Rubin points to his standard game changer: Peak oil.
Triple-digit oil prices — coming soon — will change consumer habits and force the auto industry to make a lot more motorcycles.
Read more: What Is Peak Oil?
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