Tectonic Shift in US Transportation Continued in 2012

Transportation in the United States continued its tectonic shift in 2012, with gasoline sales and miles driven continuing to decline, and model year fleet efficiency continuing to climb.  Never before, over decades of data, have miles driven not returned to their pre-recession levels by this stage in an economic recovery.  These changes generally bode well for the US economy and households, with benefits including:

• Reduced oil imports; 
• Favorable impact on international balance of trade;
• Reduced pressure on the dollar against foreign currencies; and
• Favorable impact on household finances, with fewer dollars spent on gasoline.

The contrary position is that these changes are a result of significant economic pain across our economy, due to high and prolonged oil prices, that have caused prolonged economic dislocation, evidenced by continued high unemployment, restrained consumer spending and economic growth below expectations and below average.  These observations are evidenced in the data provided below.

Gasoline sales in 2012, seen in the chart below, are at a level not seen since 1997, and are 8% below the peak set in 2005.   

Vehicle miles driven peaked in the United States in 2007, seen in the chart below, at 3,026 billion miles, and, in 2012, was 2,942 billion miles, 2.8% below the 2007 peak.

Model year vehicle efficiency continues to grow, as seen in the chart below, 2012 average miles per gallon of vehicles sold was 23.9 MPG, which is a 14% increase over the vehicles sold in 2008 of 20.9 mpg.




Sources:

1. United States Energy Information Agency
2. United States Department of Transportation
3. United States Environmental Protection Agency