Skip to comments.U.S. Gasoline Consumption Plummets By Nearly 75%
Posted on 05/30/2014 5:12:26 PM PDT by Nachum
Regular readers are familiar with my narratives on the U.S. Greater Depression, and (in particular) some of the governments own charts which depict this economic meltdown most vividly. The collapse in the civilian participation rate (the number of people working in the economy) and the velocity of money (the heartbeat of the economy) indicate an economy which is not merely in decline, but rather is being sucked downward in a terminal (and accelerating) death-spiral.
However, even that previously published data, and the grim analyses which accompanied it could not prepare me for the horror story contained in data passed along by an alert reader. U.S. gasoline consumption as measured by the U.S. Energy Information Administration (EIA) itself has plummeted by nearly 75%, from its all-time peak in July of 1998. A near-75% collapse in U.S. gasoline consumption has occurred in little more than 15 years.
Before getting into an analysis of the repercussions of this data, however, its necessary to properly qualify the data. Obviously, even in the most-nightmarish economic Armageddon, a (relatively short-term) 75% collapse in gasoline consumption is simply not possible. Unless we were dealing with a nation whose economy had been suddenly ripped apart by civil war, or some small nation devastated by a massive earthquake or tsunami; its simply not possible for any economy to just disintegrate that rapidly, without there being some ultra-powerful exogenous force also at work.
(Excerpt) Read more at zerohedge.com ...
At $4 or more per gallon, who can afford it?
Switched to Diesel nine years ago.
The 75% decline in gas use has several reasons:
1. cost of gas compared to when ZERO took office.
2. buy insurance or buy gas..try buying both and groceries with a part time job with no benefits & no paid vacation.
3. How many people should have a job and how many actual do?
AND now we are at a minus in growth for the first time.
The unemployment rate is a farce, as all those in past six years who have lost jobs are not listed, and even if only 300,000 people have applied for unemployment...there are millions who have stopped looking and aren’t eligible to collect anything from anybody....and have no hope of getting a job in their field with benefits. Maybe minimum wage but then they are underemployed...where are they listed?
And after watching those college students answer questions about history...we are in serious trouble, even if they had a job I don’t think they could survive it. I don’t want those people flying planes, working as air traffic controllers, or even making my food in a restaurant.
I guess we could sell the 75% of gas use we aren’t using..maybe that would help.
I call foul, I’m sure we still use 20 million barrels of oil per day in various forms.
Unless you get some super mileage with diesel (I wouldn’t know), the price per gallon around here is much higher then gas.
I’m sorry. This just doesn’t pass the smell test. No way the country is buying 75% less gasoline than 15 years ago.
As for jobs, while some have jobs. the others are on benefits and are free to buy lots of gas and drive all day which here they usually are doing.
20% maybe, but 75% reduction? BS.
Uh, no. I call BS on this one.
1998 was about when I stopped using my gas Suburban as a daily driver and trip vehicle.
Put down the crack pipe.
Zero Hedge needs to be banned from FR.
I don’t think so.
At first Diesel was cheaper per gallon than gas. And I got 2X mpg. Then Diesel went low Sulfur. Now the two prices are.much closer than a year ago. Plus I keep a tactical supply of up to six months worth and tend to miss buying at the peaks.
‘Lectric cars. Mmmm, mmm, mmm, mmm mmm. Gonna have to raise taxes somewhere else huh?
DETROIT ... are we there yet?
it’s stunning to see how much things are paralleling Atlas Shrugged
That was my reaction. But look at this.
It doesn't look like quite as much as a 75% drop. But it is a lot. The weird thing is that the fastest drop seemed to have occurred around 2011-2012. Perhaps some major users switched to something else.
Why isn’t traffic getting any better?
“Unless you get some super mileage with diesel (I wouldnt know), the price per gallon around here is much higher then gas.”
The same model of vehicle I drive with the gasoline engine option would be getting mileage per gallon in the single digit range (8ish or so). Same gearing ratio on my axle, same transmission, same tires, same driving and hualing/towing habits, I get 20 mpg on diesel.
Diesel is ungodly expensive, but not 2.5 times as expensive.
Look at some of the Euro/Can TDI vehicles, if you’re really interested in mileage a diesel Jetta or similar would get you 40 to 50 mpg.
No problem with gas consumption around here. The idiots keep flying up and down the road like hell on fire, and taking off from the 3-way stop on my corner like its a dragstrip (that is, IF they bother to stop).
I agree with you. The economy sucks, but that figure has got to be bogus.
Zero Hedge is full of it.
“How much gasoline does the United States consume?
In 2013, about 134.51 billion gallons1 (or 3.20 billion barrels) of gasoline were consumed2 in the United States, a daily average of about 368.51 million gallons (or 8.77 million barrels). This was about 6% less than the record high of about 142.35 billion gallons (or 3.39 billion barrels) consumed in 2007.
1There are 42 U.S. gallons in a barrel.”
And here is a graph
Interesting, I wonder what the mix is for such reduction. More efficient cars, global warming believers actually changing their lifestyles, diesels and hybrids, and people staying home rather than working.
$3.54 a gallon today in Metro Atlanta. What did they think would happen?
My understanding is that’s the plan. Barry and company don’t want us driving around polluting the country don’t ya know.
Sounds like the point of the article is that the gov cooks the books.
Oil companies have been selling off their retail operations, so fewer refiners sell retail. That's all. There is nothing more to it than that. False alarm, folks.
If demand for gasoline is down, why am I paying record high prices? Riddle me that!
Gasoline yesterday: $3.83/Gallon.
Gasoline today: $4.09/Gallon.
No explanation, nothing. Just because they can I guess.
Actually $3.60 a gallon (what I am paying) is not all that bad. I am surprised it is not worse given people like Obama are running the show. Gasoline price levels when measured against inflation are about what they were in the late 1970s and even as far back as 1918. We had a gravy train running during the 1980s and 1990s when prices were real low. Everyone got spoiled. Then prices spiked back up again due to bad energy policies and no help from Republicans. I am surprised it is not worse and gasoline prices have fared better than just about anything else when viewed over a long period. If we had conservatives running the country prices and aggressive drilling then prices would be much lower.
Well, according to Zero Hedge, no new cars are being sold. They’re being dismantled and recycled after being shipped thousands of miles. So all that gas they’re not using has to be accounted for somewhere.
Ya can’t make this stuff up!
Check out the link in #20. There seems to be a contradiction. Unfortunately I can’t follow up on this right now.
You have delivered the obvious crushing blow to this bogus story.
The number of motor vehicles in the US in
1998: 208 million
2012: 254 million
I read that site. as others do, for some of its astute comments, few and far between. Its editorial content is, let's say, entertaining.
Sounds like at least one person read the article.
There’s lots of money to be made in exporting it.
It’s not—this article is complete BS!
I doubt that percentage as well. Certainly the roads aren’t any less crowded, we’ve got more people here, and it seems half the cars out there are guzzler SUVs.
It is very simple. Fewer refineries are selling retail, that is all.
Retail sales BY REFINER, not total retail sales.
Growth of Quick Trip, decline of oil company-branded retailers.
No wonder so many get taken in by myths like global warming.
Demand is down 75%, yet the price is at all time highs.....something stinks all right.
Food is also way up in the West, BTW.
42 gallons in a barrel.
Tyler is good for a laugh.
Demand is down a tiny amount from the peak of 2007.