Hybrid Engine's Mass Appeal

Hybrid cars should appeal to every side of the landscape.

Conservatives can feel good about hybrids because they decrease the United States dependence on foreign oil to run our economy. A large portion of our oil comes from nations which are often at odds with our interests, any significant drop in our foreign oil dependence serves to improve the global position and security of the United States.

Environmentalists should be behind hybrids because they reduce the rate of harmful emissions into the atmosphere caused by burning gasoline. This primarily includes toxic materials, such as CO, and greenhouse gases. Furthermore, hybrids are available now, whereas other technologies which might lower gasoline consumption are much further from market availability.

Pragmatists should be behind hybrids because, with gas prices at $2.50 a gallon, they pay for themselves after a year or two in lower fuel costs. Additionally, hybrids are already a proven success. The industry is passing the “Early Adopter” phase as the word comes in that these cars really are of good quality.

Airlines, railroads and truck companies should be behind it because a large portion of their costs are from fuel. Several airlines currently list fuel as their #1 cost, over labor, with gas prices at their current level. Although there may not be large opportunities for improving the efficiency of jets and large diesel trucks, a decrease in the overall demand of gasoline spurred on by the adoption of hybrids would lower the market cost for all fuel types.

Auto makers stand to fall behind by not developing more efficient vehicles. Hybrid cars are being sold as fast as than they can be made. There are wait periods up to six months for some models. SUV sales, while still very high, have leveled off. Developing hybrid SUVs and hybrid domestic cars is going to become a necessity in the future.

Every industry in the US stands do gain from decreased gas prices. Cheaper costs for transporting goods and increased consumer disposable income would increase sales, profits and the availability of investment money.

Large oil companies are probably the ones to lose the most in this deal. But its not as bad as you might think. There are many costs that go into the price of gasoline, few of which impact the oil companies’ profits. Its not like with oil prices being at $60 a barrel that the oil companies are generating twice the revenue as if oil prices were $30 a barrel. They can make about as much money if gas sells for $2.50 as they do if it sells for $1.50, as long as the market competition allows for them to take a reasonable cut.

The energy bill passed two weeks ago has incentives for buying fuel efficient vehicles. This is a good first step, and I would really like to see a more aggressive approach to these sort of incentives in the future. Everybody wins.