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U.S. Gasoline Consumption Plummets By Nearly 75%
Zero hedge - BullionBullsCanada ^ | 5-31-2014 | Jeff Nielsen

Posted on 05/31/2014 11:02:00 AM PDT by blam

Tyler Durden
05/30/2014

Submitted by Jeff Nielsen via BullionBullsCanada blog,

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.

So how can this raw data, produced by the government itself, be explained? To begin with; the government chooses to measure U.S. gasoline consumption in a very odd manner: by measuring the amount of gasoline entering the domestic supply-chain rather than by measuring actual consumption at the

(snip)

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bhoeconomy; economy; gasoline; gasprices; globalwarminghoax; opec; recession; trends
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Going Galt?
1 posted on 05/31/2014 11:02:00 AM PDT by blam
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To: blam
http://www.freerepublic.com/focus/f-news/3161988/posts
2 posted on 05/31/2014 11:03:39 AM PDT by Hoodat (Democrats - Opposing Equal Protection since 1828)
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To: blam
Welcome to the Obama economy


3 posted on 05/31/2014 11:04:29 AM PDT by darkwing104 (Forgive but don't forget)
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To: blam

I was reading about this last night. Bogus!


4 posted on 05/31/2014 11:07:57 AM PDT by Lurkina.n.Learnin
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To: blam

do you suppose it is tied to the GDP??

gas consumption goes down - GDP goes down

just a thought


5 posted on 05/31/2014 11:08:59 AM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-hereQaeda" and its allies.)
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To: blam

Blame it on those tea party members going Amish, they know a good thing when they see an over abundance of bull sh#t being produced by our government.


6 posted on 05/31/2014 11:09:40 AM PDT by ReformedBeckite (1 of 3 I'm only allowing my self each day)
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To: blam

Diesel consumption would be a better indicator of the economy.


7 posted on 05/31/2014 11:12:36 AM PDT by libertarian27 (FreeRepublic Cookbooks 2011 & 2012 - Click Profile)
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To: blam
Obama's focus on Obamacare from day 1 of his administrations, rather than concentrating on economic issues has sacrificed the country on some weird ideological disorder.

This is a depression. The democrats do not want the WH next time. They will "Hoover-ize" the next President ... unless the Republican Party changes direction and makes a sane attempt to save the Republic.

If the economy is not restored in the period 2014-2020, you can write off the American experiment. We'll no longer be a country of the first rank, and with our new demographics, we'll be like Brazil.

What is the official (or informed) rationale behind fuel prices right now. It cannot be a simple case of supply and demand.

8 posted on 05/31/2014 11:13:07 AM PDT by Kenny Bunk (Vote for a gay African Marxist for POTUS? Sure. What could go wrong?)
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To: blam

Did anybody else notice the price dropping the same as the consumption rate? No? Yeah, me neither.


9 posted on 05/31/2014 11:27:03 AM PDT by rktman (Ethnicity: Nascarian. Race: Daytonafivehundrian)
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To: Kenny Bunk

Please! If the government is giving you a number you know it’s bullshit. If it’s congress you know a senator or congressman is getting paid off.


10 posted on 05/31/2014 11:28:00 AM PDT by lostboy61 (Lock and Load and stand your ground!)
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To: blam

Bogus govt data.


11 posted on 05/31/2014 11:29:30 AM PDT by Paladin2
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To: blam

Going Galt?

Perhaps a few of us but remember the population is aging and after retirement the need for speed and by extension, gasoline, isn’t a big part of one’s budget. Lot’s of us Boomers sitting at home now. No kids to shuttle to school or soccer practice. The vehicles we are able to purchase are more efficient on fuel consumption. OK, OK, if you exclude the Vette and the Caddy XLR and the F-350 Dually we keep around for hauling landscape materials and the yacht. But I digress. What need is there of gasoline if those fewer still working are doing so to be able to send unemployment and disability checks to the ‘indigent’ who have no need of such a commodity. The larger that that category gets the fewer gallons of gas that must be consumed overall. It’s WIN WIN for everyone. sarc/.


12 posted on 05/31/2014 11:30:58 AM PDT by CARTOUCHE (9999 EOM)
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To: blam

Check the ordinate range.


13 posted on 05/31/2014 11:36:07 AM PDT by Steely Tom (How do you feel about robbing Peter's robot?)
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To: All


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14 posted on 05/31/2014 11:37:04 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Paladin2

Bogus Zero Hedge data. What’s shown is a shift from refiner-owned retailing to convenience/grocery/big box stores and some other factors like contract refining and freer imports/exports.

Very slightly less gas being consumed in the US due to the slow Obama economy, but no plunge.

Zero Hedge is just a collection of kook bloggers.


15 posted on 05/31/2014 11:37:17 AM PDT by jjotto ("Ya could look it up!")
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To: blam

Yet the price continues to climb.
When did this country become a bunch of insider aholes that manipulate the market?


16 posted on 05/31/2014 11:38:27 AM PDT by mylife (The roar of the masses could be farts)
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To: rktman

Amen, and on top of that production is UP.


17 posted on 05/31/2014 11:39:49 AM PDT by mylife (The roar of the masses could be farts)
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To: blam

Must have sold a lot more Chevy Volts than we thought./sarc


18 posted on 05/31/2014 11:40:41 AM PDT by Eagles6 (Valley Forge Redux. If not now, when? If not here, where?)
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To: blam

The book “How to lie with statistics” comes to mind.


19 posted on 05/31/2014 11:42:20 AM PDT by OldNavyVet (Looking forward to November elections.)
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To: jjotto

ZeroHedge is better than kooks, but without question this posting by them was quite a humiliation.

The value of ZH is the comment threads, in which there seems to be signal to noise ratio that is better than most.


20 posted on 05/31/2014 11:44:26 AM PDT by Owen
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To: blam

Combination of higher fuel efficiency and flatlining miles driven:

http://www.fhwa.dot.gov/policyinformation/travel_monitoring/14martvt/14martvt.pdf

Page 9


21 posted on 05/31/2014 11:45:02 AM PDT by Wyatt's Torch
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To: libertarian27

‘Diesel consumption would be a better indicator of the economy’

Yes & no. Diesel would show the actual use of trucks and show the delivery of goods. But gas consumption shows the amount of driving a society is doing. A majority of driving is done to facilitate work. If you do not work, you rarely drive. Or at least you drive much less. Even unemployed people need to buy food and staples.

Most suburbanites drive an average of forty miles per day, 20 miles per day , 200 miles per week for work. With extra driving for picking up and dropping off kids, trips to shopping and the in laws you can expect to drive around 300-350 miles per week. Approximately 1 tank of gas per week. If two people in the household work, or the norm before 2009, two tanks per week per household.

Eliminate one worker per household, half the gas is used.

We KNOW there are 25 million people NOT working that USED to work. Eliminate 25 million jobs, eliminate 25 million tanks per week, 106.25 tanks per month. Average tank for 2010 sedan is 18.5 gallons. 165,625,000 gallons per month. or about 70,000,000 barrels of oil a month. On Average.

That adds up to lots and lots of extra gas and oil NOT being used here and surely being used in China and India.

Unemployed people don’t drive very often.


22 posted on 05/31/2014 11:45:13 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: mylife

Since 1792.


23 posted on 05/31/2014 11:46:10 AM PDT by TADSLOS (The Event Horizon has come and gone. Buckle up and hang on.)
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To: Eagles6
Must have sold a lot more Chevy Volts than we thought./sarc

Was thinking the same thing! Back in 2009, my liberal brother-in-law made a bet with me that in five years, electric cars would take over the market from gasoline cars, and on top of that there would be no more gasoline-powered cars. We bet $100. I'll try to collect this summer when five years is up. He must be hacking the government gas-use figures!

Unfortunately, he's suffering some dementia now so I'll have to work at prying the money from his hands…

24 posted on 05/31/2014 11:46:21 AM PDT by roadcat
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To: Owen

Here’s another classic Zero Hedge kook piece:

http://www.freerepublic.com/focus/f-news/3158191/posts


25 posted on 05/31/2014 11:48:16 AM PDT by jjotto ("Ya could look it up!")
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To: blam

Price goes up, demand goes down. The demand for gasoline was always more elastic than the economists think.


26 posted on 05/31/2014 11:49:21 AM PDT by Daveinyork
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To: blam

Gotta be all of those new electric cars. Just has to be.


27 posted on 05/31/2014 11:57:48 AM PDT by unixfox (Abolish Slavery, Repeal the 16th Amendment)
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To: blam
U.S. Gasoline Consumption Plummets By Nearly 75%

That drop in gasoline consumption is directly proportional to the number of people who dropped out of the workforce.

:)

But, fudging with statistics aside, the fact remains that, with millions of fewer people in the workforce, the demand for gasoline will naturally be a lot less.
28 posted on 05/31/2014 12:00:30 PM PDT by adorno (Y)
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To: blam

Just more of the same political math that has Obammay still ahead in the polls, icebergs melting from beneath polar bears, and Chewbacca “passing laws” concerning food your kids wont eat and advocating more math that makes their world view “add up”.

I’m tired of this ride.


29 posted on 05/31/2014 12:04:29 PM PDT by Delta 21 (Its my freedom. YES. I will be keeping it.)
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To: blam

We can’hardly afford to pay our mortgages and buy food at the same time anymore because of the great Obama economy. Are they really surprised?


30 posted on 05/31/2014 12:06:53 PM PDT by jsanders2001
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To: blam

There is something obviously wrong with the 75% number.
FAQ from US Dept of Energy:
“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.”
http://www.eia.gov/tools/faqs/faq.cfm?id=23&t=10


31 posted on 05/31/2014 12:07:45 PM PDT by Proud2BeRight
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To: blam

obamanomics

islamism regardless how it’s cut.


32 posted on 05/31/2014 12:09:48 PM PDT by onedoug
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To: blam

Not unexpected, when people don’t have jobs, they neither have money or anywhere to go. I guess Pelosi was right about unemployment checks boosting the economy. What do we have now over a million, more? erased off the unemployment rolls receiving no benefits and no work available. What could possibly happen to the economy.


33 posted on 05/31/2014 12:14:04 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: jsanders2001

“We can hardly afford to pay our mortgages and buy food at the same time anymore because of the great Obama economy. Are they really surprised?”

No, not at all. It is working out exactly how the Dems planned. I’ve never seen white people reduced to such a state as I see now; we are reaching the Dems’ vision of “equality”. Who do you think most of the new recipients of food stamps are? The gibsmedats were already on the rolls for generations...


34 posted on 05/31/2014 12:17:47 PM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: roadcat

If he’s a lib he was already suffering from dementia.


35 posted on 05/31/2014 12:18:26 PM PDT by Eagles6 (Valley Forge Redux. If not now, when? If not here, where?)
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To: blam

“Going Galt?”

No, going “Red Chinese Peasant”. Americans are fleeing my area, and are replaced by hordes of Aztecs and Incas riding bikes to their under-the-table jobs...


36 posted on 05/31/2014 12:19:18 PM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: blam

Ridiculous


37 posted on 05/31/2014 12:20:05 PM PDT by Sacajaweau
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To: jjotto
Exactly. The chart shows clearly that refiners are selling fewer gallons at retail, primarily because they are getting out of the retail gasoline biz altogether. Some vapor brain at ZeroHedge therefore concludes that because refiners are selling less gas, the consuming public is buying less gas.

In reality, of course, the motoring public's appetite for gasoline is still fairly strong, and within a few tenths of a percent, they're buying as much as they ever have.

But they're buying their gas from retailers who aren't refiners, I.e., from convenience store operators who sell gas so you'll come in and buy higher margin items like beer and smokes. All the ZeroHedge chart shows is that the refiners are exiting the retail gas biz. But ZH doesn't draw the correct conclusion from the chart.
38 posted on 05/31/2014 12:30:32 PM PDT by Milton Miteybad (I am Jim Thompson. {Really.})
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To: Lurkina.n.Learnin
I was reading about this last night. Bogus!

My first reaction too. I don't believe it.

39 posted on 05/31/2014 12:36:41 PM PDT by InterceptPoint
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To: blam

Oklahoma credit cards .....


40 posted on 05/31/2014 12:40:13 PM PDT by Squantos ( Be polite, be professional, but have a plan to kill everyone you meet ...)
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To: Milton Miteybad

ZH is looking like young teenagers in their moms’ basements using vivid imaginations on random on-line ‘facts’ without context.


41 posted on 05/31/2014 12:40:19 PM PDT by jjotto ("Ya could look it up!")
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To: roadcat

Should have demanded the 100 bucks up front to be put in escrow. Now you’ll never get your hundred bucks. Liberals dont pay off their gambling debts.


42 posted on 05/31/2014 12:44:56 PM PDT by lowbridge
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To: jjotto; blam

You’re being too kind. I can’t imagine a worse site to pay attention to than Zero Hedge. I’m surprised linking to it is still allowed here.


43 posted on 05/31/2014 12:47:44 PM PDT by be-baw (still seeking)
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To: Milton Miteybad

This is just silly. The feds impose a federal excise tax on every gallon sold at the pump. All they have to do is release the amount of tax received, divided by the tax rate, and you have the number of gallons sold.


44 posted on 05/31/2014 12:51:01 PM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: Lurkina.n.Learnin

When they show a infographic that shows “total energy consumption” for roadway vehicles... then I will pay attention. I drive a diesel. Gasoline is what you use to clean gear oil off the innerds of a differential.


45 posted on 05/31/2014 12:57:23 PM PDT by Rodamala
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To: kearnyirish2

>
In the News/Activism forum, on a thread titled U.S. Gasoline Consumption Plummets By Nearly 75%, kearnyirish2 wrote:
“We can hardly afford to pay our mortgages and buy food at the same time anymore because of the great Obama economy. Are they really surprised?”

No, not at all. It is working out exactly how the Dems planned. I’ve never seen white people reduced to such a state as I see now; we are reaching the Dems’ vision of “equality”. Who do you think most of the new recipients of food stamps are? The gibsmedats were already on the rolls for generations...

There is a difference. The Gibmedats are all employed at the Department of Health & Human Services and they don’t give out equal pay per situation. It is very much based on how they want to dole it out (know 3f families with real needs that were white; they were told on that the would give them $16 per month if food stamps, another one less than $50, and the last one with three children that was told it would also be less than $50 since she was working.If anyone thinks otherwise and you can get some Hispanic and African Americans to go in with the exact same figures as far as income, children’s, needs, etc...you will see exactly what I am talking about.

Hey James O’Keefe I have your next idea...


46 posted on 05/31/2014 1:17:09 PM PDT by jsanders2001
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To: blam

More meaningless, misleading and incorrect government data.


47 posted on 05/31/2014 1:25:42 PM PDT by Iron Munro (Black skin has morphed into Teflon.)
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To: blam
"Going Galt?"

There's much of that happening. I live in a remote area on the CO Rockies with local governments and businesses closely linked with them relying on tourism and regulations thicker than those in big cities with numerous, monstrous fees and increasing taxes--especially many strange, large fees for building on private properties (everything required to be engineered, including barns).

Traffic is much thinner as a result and has been declining for several years. A feeding frenzy resulting, with bureaucrats trolling the countryside and parks for any violations that might yield fines, fees, etc. They're favored for various kinds of federal funding, and they cheerlead, claiming that business, revenues and the economy are greater than ever before. But they've laid off their more technically inclined and less degreed employees (thus, everything required to be engineered, impact fees, etc.).

Many don't realize that people can find many ways to use less fuel to reduce their own costs, thereby reduce their own contributions of revenues to political regulators (fuel taxes, taxes on junk food in some counties, yes, etc.) and get ready for the horror show of inflation and heating cost hikes next winter (going to shock many while driving a wave of new foreclosures).

Call off the long range vacation. Vacation closer to home. Find new ways to have peace of mind at home (sound insulation, new activities, etc.). Croquet, anyone? Calisthenics? Go for walks. Money-saving home energy, gardening and other projects (with stealth designed in, of course)?

Reduce grocery trips. With a little thought about storage and the making of a great grocery list, it's easy to reduce grocery trips to one per month or less. That's how some of the Joneses will manage to stay in their homes. Dress cheaply. It's all the rage. Cook from scratch.

And yeah, those of you who can ride one, get a bicycle (or even build a three-wheeler). If you want to really rub it into the faces of the socialist political/regulator folks, get one of those conical rice hats to wear while bicycling. They're the ones who manage the decline. Add a little garnish to the third world environment that they've been causing.

Have fun. Enjoy the slide. It can't be stopped. People are only trying to survive the inactivity caused by those who've outlawed all kinds of productive and honorable activities. Sturgeons of debt/revenues, too bad. No sale. Find some real, productive work to do.


48 posted on 05/31/2014 1:45:01 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: jjotto

I wish folks would stop posting the TownHall and ZeroHedge rants; the sites simply lack credibility.


49 posted on 05/31/2014 1:48:20 PM PDT by sefarkas (Why vote Democrat Lite?)
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To: sefarkas
"I wish folks would stop posting the TownHall and ZeroHedge rants; the sites simply lack credibility."

I looked around for the serious articles that you post...couldn't find any articles that you post.

You just whine a lot.....eh?

50 posted on 05/31/2014 1:56:54 PM PDT by blam
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