Automotive and oil industry profits

Automakers' profit margin typically hangs around 1% (in the U.S., 0.4%), far below the oil industry’s. The 2007–2008 global financial crisis sharply cut sales of new vehicles and the financial stability of the U.S. Big 3 auto manufacturers (Ford, General Motors, and Chrysler).

 

Energy flow through a typical internal combustion engine drivetrain

This chart shows why less than 0.5% of the energy in a typical modern auto’s fuel actually moves the driver, and only 5–6% moves the auto. An auto's weight is responsible for more than two-thirds of the energy needed to move it. All told, 86% of the fuel energy never reaches the wheels.

 

Electricity scenarios

In Reinventing Fire, Rocky Mountain Institute investigates the implications of four radically different future electricity scenarios - from a “business-as-usual” case to a network of intelligent microgrids powered largely by distributed renewables.

 

Vehicle retail price and curb weight, new U.S. car sales, model year 2010

Lightweight autos needn’t cost more. The MY 2010 U.S. new-car fleet shows little or no correlation between lighter weight and higher prices.

 

Sales-weighted curb mass and density of new autos sold in U.S., 1986–2009

Autos in the U.S. have increased in weight by 16% since 1986 to an average of 3,533 lb. in 2009. Cars have also gotten denser, rising 14%—from 28 to 32 lb per interior cubic foot. Yet since 1986, U.S. adults got only 8% heavier.

 

Historic and projected U.S. electricity demand, 1950-2050

While U.S. demand for electricity has risen in all but four years since 1949, the rate of increase has been steadily trending down. The Energy Information Administration predicts an annual growth rate around +1% to 2030 (which RMI extrapolates to 2050). Successfully implementing the energy efficiency improvements in buildings and industry discussed in Reinventing Fire could reduce this to a steady –1%.

 

Tractive load formulas

Powertrain efficiency from tank to wheels can't exceed 1.0, and is around 0.17 in a typical modern car or 0.35 in a good "full hybrid," but the energy needed to move the car can be reduced severalfold by making it lighter and more slippery.

 

Technologies that convert waste heat to electricity

Based on a Lawrence Berkeley National Laboratory (LBNL) report on technologies that generate electricity from waste heat (and other waste energy sources), our analysis adopted the options summarized in the table.

 

Transportation sector job quantity impact

In the transportation sector, Reinventing Fire affects jobs in oil exploration and production, auto manufacturing, auto parts and auto repair, and hydrogen and biofuels production. The net effect on jobs from these changes is relatively small.

 

Drag coefficient and retail price, new U.S. car sales model year 2010

As with lightweight autos, more aerodynamic autos needn’t cost more. A survey of currently available autos shows that lower drag vehicles, as a whole, cost no more than less aerodynamic ones.

 

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