The Mankato Free Press

Distributed by Tribune Content Agency

A report from an oil analyst that aired on National Public Radio noted their ranks were thinning because oil prices have been depressed for about 18 months was almost melancholy. Almost.

While the analyst said her ranks were thinning, she noted Americans have learned a valuable lesson over the last five or 10 years with regard to skyrocketing oil prices: We’ve learned to conserve. And that has made all the difference.

When gas and other energy prices plummeted in years past, American consumers reacted in exactly the wrong way. They bought bigger, less fuel efficient cars; built bigger houses; added more air conditioning; and didn’t bother with pesky things like insulation.

But that is no longer the case. Americans have learned to conserve. In fact, even with oil prices at historic lows in 2015, the U.S. Energy Information Agency predicts gas and oil prices will be still lower in 2016.

The prices continue to drop even though U.S. consumption of gasoline was up 3 percent through November compared to a year ago. Supply is still far outpacing demand. And gasoline refiners are actually showing bigger profit margins because crude oil prices continue to be historically low, according to EIA.

A mild winter is no doubt contributing to the low prices, as there is less demand for heating oil.

But U.S. policy, some of it bipartisan, has put a lot of pressure on the oil markets. In 2008, the Obama administration made a deal with auto dealers to increase the average mpg for U.S. autos.

From 2012 to 2014, average mpg for sold vehicles rose from 23.5 to 25.8 miles per gallon in the U.S., according to a study by the University of Michigan. These kinds of changes make a real difference in how much fuel we consume. We’ve also learned conservation that leads to lower fuel prices gives us more money to spend on fun things like going out to a restaurant or going on a vacation.

But there are signs we are forgetting what low fuel prices can bring and how long they will last. There’s been a recent uptick in the number of less fuel efficient SUVs and trucks being sold. We should remember: Oil and gas prices can increase just as they declined.

But it’s good that many of us have learned an economic lesson about conservation and efficiency so we can control at least part of our own economic destiny.