Guy Caruso, the government’s “top energy forecaster” enlightens us about offshore drilling.  Caruso, of the Energy Information Administration, said that the expansion of offshore oil drilling wouldn’t do very much to lower gas prices.

Caruso recently held a briefing at the Center for Strategic and International Studies on the EIA’s new long-term international energy forecast.  He said, “It would be a relatively small effect, because it would take such a long time to bring those supplies on.  It doesn’t affect prices that much.

The Energy Information Administration held the same view in 2007.  Back in 2007, the EIA stated that offshore drilling “would not have a significant impact” on oil prices.

The fact of the matter is that offshore drilling will not really help the U.S. in a fuel crisis.  Offshore drilling would only increase oil supply slightly.  Offshore drilling wouldn’t even have a very big impact on fuel prices.  If it isn’t going to increase out oil supply drastically or reduce our oil prices, why proceed?

If you don’t like to travel when it is crowded and packed with people, now is the perfect time.  The Wednesday before Thanksgiving gave a perfect insight into the holiday travel season.  Travelers strolled through open airport terminals.  Drivers cruised through open roads.  The economic crisis really is putting a damper on everyone’s plans this holiday season.

Gas prices have fallen in recent weeks.  But, the economy as a whole is still hurting.  Airlines who offered incredible holiday deals couldn’t entice enough people to travel.  Americans look like they will be skipping trips altogether this year.

Travelers are noticing the difference this year.  Some travelers say this is the lightest Thanksgiving travel they have ever seen.  There aren’t long lines.  There aren’t crowded facilities.  There aren’t many travelers, period.

The Automobile Association of America says that over 41 million Americans were expected to travel more than 50 miles for the holidays.  This is a 1.5 percent decrease from last year.  There are 600,000 fewer people traveling than in 2007.  People are thinking twice about spending $400 on a 1200 mile trip.

More Americans are considering staying home this year during the holiday season.  Gifts will be mailed instead of hand-delivered.  Home, sweet, home is where people are headed this holiday season.

GM employees have been banned from buying GM shares through the company’s 401(k) plans.  Why?  GM’s financial difficulty.

GM simply wants to register more shares of stock for its 401(k) participants to buy.  The financial institution that is in charge of the company’s 401(k) plans refuse to approve this move.  The bank recently said that it must “focus exclusively on the best interests” of the 401(k) participants.

CNBC analyst Paul Kedrosky said, “It is almost too surreal for words.  Next up, I’m guessing is that American Airlines employees won’t be allowed to fly on AA planes.”  It’s just too dangerous.  Although Goldman Sachs cut GM’s auto sales outlook today, the shares are up 17 percent.  Today, it costs about $4.17 per share.

You know things are bad when employees are being discouraged from buying a company’s stock.  The industries that are in the most trouble are receiving aid from the government.  Almost every industry that is suffering…every industry but the auto industry.

Although the leaders of major American auto makers have petitioned Congress over and over, it doesn’t look like any federal aid will be made available to the struggling industry.  Congress and other national leaders say that the trouble the auto industry is facing is from its own mistakes.  Leaders of these auto companies beg to differ.

The question of whose fault it is remains unanswered.  The American auto industry is in dire need and it doesn’t look like there is any optimism to look forward to in the near future.

Keeping your car a few years longer can really benefit you.  You will have fewer and cheaper car payments.  Insurance is also lower because the car isn’t brand new.  As soon as you pay off your car, you can start saving for a new car.  You can buy your next car in cash and save a lot more money.  Here are a few ways to make your car last 250,000 miles or more.

1.  Maintenance.  You’d probably be surprised to find out that the majority of people don’t maintain their cars or vehicles like they should.  It is so important to follow the maintenance schedule, especially if you want your car to last.  Keeping your car up-to-date on its maintenance will cost you between $500-$1000 per year but it will save you thousands in the long run.

2.  Recalls.  Another important way to keep your car running longer is to pay attention to recalls.  MyCar.com allows you to print the recall notice and take it in to the dealership.  This will help you get defects fixed for free.

3.  Be nice to your engine.  Probably the most important part of your car is your engine.  Without it, your car wouldn’t run.  It is important to be nice to your engine, take it easy and keep it maintained.  Avoid speeding and letting your car idle for long periods of time.  Don’t tow heavy loads.  Towing can be especially damaging to an engine.

4.  Oil changes.  Regular oil changes can prolong the life of your vehicle and get you better gas mileage.  Use a good quality oil to protect your engine and keep it running smoothly.

5.  Routine.  Get into a regular fill-up routine.  Every time you stop to fill up, pop the hood and check the oil.  Wipe down the battery while you are in there and be sure to check for cracks, bulges and corrosion.  Be sure to check your tire pressure too.  Keeping your tires properly inflated will increase your gas mileage and reduce the wear and tear on your car.

These simple tips can prolong the life of your vehicle significantly.  You can make your car last for 250.000 or more.

1.  A fender-bender is a major expense.  Most people don’t think that a fender-bender is a major expense.  The average cost of replacing a 1998 Buick LeSabre fender is $982.  Imagine what the cost would be on a newer or nicer vehicle.  Replacing the front bumper on a 2006 Mercedes-Benz E-Class can be up to $1,350.  Small accidents can end up costing you a lot of money.

2.  Tightfisted insurance companies have a list of approved auto shops.  Insurance companies aren’t thrilled to pay for damages.  These stingy insurance companies use a list of approved auto body shops.  Shops on this list usually cut corners and don’t do the job the right way.  Make sure that you take your car to a good quality auto shop.  Don’t let your insurance company force you into taking your car somewhere specific.

3.  Replacement parts are not always created equally.  Just because you pay for a factory part, doesn’t always mean that you get a factory part.  Original parts are manufactured to fit precisely.  These parts are also safer than other parts.  Many auto body shops use salvage parts that aren’t safe and are not good quality.  Be sure your car isn’t equipped with one of these parts when you get it back.

4.  Due date?  Don’t plan on having your car back when they tell you it should be back.  Mechanics are notorious for missing deadlines.  Give yourself a little bit of extra time to ensure you aren’t needing your car back too quickly.

5.  Rental cars will cost you.  Even if you have rental-car insurance, it can be pricey to rent a car while yours in in the shop.  Rental insurance typically covers the cost of a small, compact car.  If you need a larger car, make sure you are paying for it in your monthly insurance premium.

6.  Language is key.  You can’t take a specialized European car to an American body shop.  You can’t take an American car to an import body shop.  You car needs a body shop and auto shop that will speak its language.  This is one of the most important steps in fixing your car properly.

7.  Insurer’s warranty.  Many insurance companies entice you to use a body shop within their approved network by offering warranties on the parts you have just replaced.  Often times, these warranties are not all that they are cracked up to be.  Most shops will guarantee their work anyways.  You don’t need to buy an expensive warranty.

Make sure you know what to do in the event of an accident.  Remember that any accident, even minor ones, can end up costing you a bundle.  Be aware of these seven things that the auto body shop won’t tell you about.

What is causing the hit on the auto industry?  A carefully proportioned witch’s brew.  Credit has been a lot harder to get in recent months because of the financial crisis.  There has also been a lack of lease financing.  These threats are in addition to all of the other threats that consumers already face:

-Rising unemployment

-The decreasing value of assets

-Low consumer confidence

-High gas prices

-And on, and on, and on

The auto industry just keeps spiraling downward.  Recently, all of the major auto manufacturers saw a major decline in monthly sales.  There were as follows:

-Nissan was down 37 percent

-Ford was down 35 percent

-Chrysler was down 33 percent

-Toyota was down 32 percent

-Hyundai was down 25 percent

-Honda was down 24 percent

-GM was down 16 percent

-VW was down 9 percent

Consumers aren’t really buying trucks and SUVs anymore.  What few vehicles are being purchased are compact, passanger cars.  It is just getting too expensive to fill up larger cars, trucks and SUVs.  People can’t afford to spend $100 at the pump anymore.

Something has to be done if the U.S. auto industry expects to make it out of this crunch.  Alternative forms of energy need to be developed so that the auto industry doesn’t crash and burn any more.

It has been predicted that one in five U.S. car dealerships will go out of business by next year.  Think back to the last time you drove through your town.  Were all of the car dealerships doing well?  Chances are, they weren’t.  If you were to take a trip through your town today, you might be surprised to see how many car dealerships have already gone under.

Investors are staying away from the auto industry right now.  The housing market is viewed as a more profitable industry than the auto industry right now.  Can you believe that investors would rather invest in the housing market than they would in the auto industry?  Why is that?  Well, the housing market has been and will continue to receive federal aid.

Although the auto industry has been begging and pleading for federal aid, it doesn’t look like it will be receiving any money.  Government officials view the auto industry crisis as one they have brought upon themselves.

What are some things that would help the auto industry right now?

1.  Alternative forms of energy.  Gas prices are just way too high.  Cars and other vehicles that use alternative forms of energy have been more popular than traditional vehicles lately.  The government has even set up tax breaks to reward those people who are using these other forms of energy.

2.  Fuel additives.  Fuel additives need to be used more than they have been.  Fuel additives can increase gas mileage significantly and can reduce emissions even more significantly.  There needs to be incentives set up for the use of fuel additives.  It is getting to the point now where consumers have to use fuel additives to save money on gas, get better gas mileage, clean out their engine and save the environment.

Things aren’t looking too good for the auto industry right now.  However, finding more alternative forms of energy can help save the dying market.  More use of fuel additives may also be the key to saving the U.S. and world auto industry.

That’s correct.  You heard that right.  Drivers who calculate their gas mileage every time they fill up already know the truth.  But, the general public began catching on to the dirty little secret several years ago when the Toyota Prius hit the showrooms.  The EPA said that the Prius could get 60 mpg in the city and about 51 on the Interstate.  However, it didn’t take long to figure out that those numbers were overstated, way overstated.  Drivers soon calculated Pruis gas mileage.  The Prius’ registered gas mileage was only in the 40s.

Auto makers, including Toyota, recognize and acknowledge that the EPA overstates gas mileage.  But, the fuel economy testing process (and “window-sticker ratings”) are often controlled by heavy regulations.  New testing methods show closer “real-world” fuel efficiency numbers.

If you want to get the fuel economy that the EPA has promised for years, you have to make several adjustments.  Try driving you car the way the EPA does, without any real driving conditions.  Yes, that’s right.  The EPA tests gas mileage by throwing the vehicle on a treadmill without air conditioning, low speeds and without fast starts.

Fuel economy confusion has spiked in recent months because of the increased price of gas.  Mitsubishi was the first auto maker to deal with the problem.  Mitsubishi released the re-designed Lancer for 2008 which promised an increase in fuel efficiency.  The 2006 model got 27 mpg in the city and 35 on the highway.  The 2008 numbers were shocking.  Fuel efficiency dropped to 22 mpg in the city and 29 on the highway.

Luckily, better tests have been developed that show more real-life gas mileage.  Expect 2008 models and later to be more precise when it comes to fuel efficiency.  However, you still need to read those fuel efficiency stickers with a certain degree of skepticism.

There has been much debate as to whether or not the U.S. is running out of gas.  People have been saying that the world has a short oil supply for decades now.  Experts predicted that there wouldn’t be enough oil left to teach the coming generations how to drive.  Obviously, these predictions never came true.

People seem to use the same method for calculating how much oil is left on the earth.  The method uses two main factors:

1.  The number of barrels that can be extracted with existing technology

2.  The number of barrels that are used throughout the world each year

These two factors usually go into this equation:

The years of oil left = the number of barrels available divided by the number of barrels that are used in a year.

This equation is used all of the time.  However, it is a naive way of calculating how much oil we have left.  For one thing, this equation does not consider the development of new technology.  New technology is constantly being developed.  This technology helps us gain more access to much more oil.

The fact of the matter is that we will never run out of oil.  Well, we will never physically run out of oil.  Oil will still be found in the ground 10 years from now, 100 years from now and even 1,000 years from now.  If the earth started producing less oil, the price of gasoline would sky rocket.  Naturally, demand would go down.  Additionally, alternative forms of energy are constantly being developed.  As these forms of energy are perfected, gasoline will be used less.

The average price for a gallon of gas these days, nationwide, is about $1.90.  The nation’s cheapest gas is in Kansas City, MO.  Drivers there are enjoying $1.40 per gallon.

Since the drop in gas, the average family now has about $1,250 a year back into their wallet.  Well, the average family has about double that amount now.  A family would save about $1,250 a year if gas dropped $1 per gallon.  Since July, it has dropped more than $2 per gallon.

So, who has benefited the most from the dramatic drop in gas prices?  The biggest winners are the poor and middle-class households.  These people end up being forced to spend “disproportionate” amounts of their income on energy.

Even amidst the widespread economic crisis, consumers around the country are spending money this holiday season.  When gas prices were at their peak in July, consumers quit spending money on the “extras.”  Now, even with the threat of job losses and a recession, consumers aren’t pulling back as much.

But, the decrease in gas prices isn’t necessarily a good thing for everyone.  The transportation industry expects to lose about $4 billion in 2008 alone.  Elizabeth Merida, an Air Transport Association spokeswoman recently said, “With the price of fuel being so high for so many months this year, the industry is not going to make a profit this year.  Because fuel is our No. 1 cost and energy is such a volatile market, our situation is very tenuous.  Every penny increase in a gallon of jet fuel translates to an additional $187 million in annual operating costs.”

Air lines, cruise ships, taxicabs, etc got rid of fuel surcharges at the beginning of 2008.  The industry is now reconsidering.  The extra money that is being lost from fuel surcharges is now being lumped into ticket prices.  The entire transportation industry is really hurting right now.  You can expect to pay higher ticket prices and other surcharges to cover the dramatic drop in fuel prices.

$2.00 gas is a good thing if you drive your car everywhere.  But, it can be a more dangerous expense now if you plan on flying or using other forms of public transportation.