U.S. Gasoline Consumption Plummets By Nearly 75%

zero hedge ^ | 5/30/14 | Tyler Durden

[Nachum]

Regular readers are familiar with my narratives on the U.S. Greater Depression, and (in particular) some of the government’s 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, it’s 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; it’s simply not possible for any economy to just disintegrate that rapidly, without there being some ultra-powerful exogenous force also at work.

[9YearLurker]

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.

[Praxeologue]

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.

It is very simple. Fewer refineries are selling retail, that is all.

[jjotto]

Retail sales BY REFINER, not total retail sales.

Growth of Quick Trip, decline of oil company-branded retailers.

http://www.nacsonline.com/YourBusiness/FuelsReports/GasPrices_2013/Pages/WhoSellsGas.aspx

[familyop]

"Why isn’t traffic getting any better?"

It's getting very slim around some tourist areas in the West (away from cities). But then gas is even higher here, as is everything else. And laws and policies have been leaning even further to the left (CO gun control, more regulations, fees, taxes, more fire bans, etc.).

[Praxeologue]

Retail sales BY REFINER, not total retail sales.

Finally!

No wonder so many get taken in by myths like global warming.

[Red in Blue PA]

Demand is down 75%, yet the price is at all time highs.....something stinks all right.

[familyop]

Food is also way up in the West, BTW.

[Toddsterpatriot]

I'm sometimes surprised that Tyler can tie his shoes. He's so stupid.

42 gallons in a barrel.

Source

[Toddsterpatriot]

Sounds like at least one person read the article.

Tyler is good for a laugh.

[nascarnation]

Demand is down a tiny amount from the peak of 2007.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mgfupus1&f=a

[wideawake]

ZeroHedge, as usual, is playing fast and loose with the numbers.

The data linked is not total US "gasoline consumption."

It is a very different statistic, specifically "US Total Gasoline Retail Sales by Refiners.

It used to be that refining companies not only refined oil into gasoline, but also owned gas stations where they sold retail gasoline.

Many of the refiners have sold their gas stations to MLPs or retailers like Pantry Inc. and no longer own or operate retail gas stations.

ZeroHedge's analysis here is moronic.

[wideawake]

See post 51.

[Kickass Conservative]

Well, it’s a good thing, right?

Obama has a whole lot more Golf Courses to get to before his Reign Off Terror is over in 2017 and AF1 doesn’t run on Batteries. Well, it doesn’t run on plain old Gas either, but you get the drift.

Think about that for a moment. We are stuck with this Obama Bastard until January 2017. That’s a long way off.

[Toddsterpatriot]

ZeroHedge's analysis here is moronic.

As is so often the case.

[Old Yeller]

Time for a mileage tax.

[Stentor]

Tyler is good for a laugh.

Since the article was written by Jeff Nielson, I don't see the relevance. Nielson reads like a rabid anti-American, but I'm more likely to believe him than US government statistics at this time.

[smokingfrog]

Bulk sales are not too different though.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=A103B00001&f=M

[wideawake]

See post 51. This Nielsen idiot is using government statistics, and using them very poorly at that.

How gullible can ZeroHedge's readers be?

[wideawake]

Are bulk sales defined as from the rack, or not?

I'm not sure people realize how many different steps there are between drilling a well and filling a gas tank.

Almost every step has been disintermediated - many refiners never own the gasoline they refine: they are processing it for the owner.

[Toddsterpatriot]

Since the article was written by Jeff Nielson, I don't see the relevance.

Since Tyler posted it, it is relevant. Took me 5 minutes to find the proof of the errors.