Washington (Platts)--10Nov2008

A national speed limit of 55 mph would likely reduce annual oil
consumption in the US by about 1%, but imposing the measure is just one of
many factors including limiting congestion and keeping cars properly tuned
that would cut gasoline use, the Government Accountability Office said Monday.

GAO, the investigatory body of Congress, found that while driving slower
will increase fuel economy, varying factors unforeseen such as driver
behavior, road conditions, and weather will play major roles. GAO consulted
with the Department of Energy, Department of Transportation, and the
Environmental Protection Agency for the study.

"The speed limit is only one tool among many for potentially conserving
fuel," GAO wrote in a report addressed to Senator John Warner,
Republican-Virginia. "Certain realities, such as congestion on our nation's
roads, how people drive and maintain their vehicles, and emerging
technologies, are other potential considerations as the nation looks for
options to conserve fuel."

Warner requested the report on July 8, just three days before oil hit
$147.27/barrel on NYMEX.

GAO used DOE data that said a 55 mph speed limit could save 175,000 to
275,000 b/d of US consumption of 21 million b/d.

The country's previous 55 mph speed limit was repealed in 1995, when
Congress and President Clinton determined that states could still get federal
funding even with a higher speed limit.

--Alexander Duncan, alexander_duncan@platts.com