Skip to comments.U.S. Gasoline Consumption Plummets By Nearly 75%
Posted on 05/31/2014 11:02:00 AM PDT by blam
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 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.
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
(Excerpt) Read more at zerohedge.com ...
I was reading about this last night. Bogus!
do you suppose it is tied to the GDP??
gas consumption goes down - GDP goes down
just a thought
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.
Diesel consumption would be a better indicator of the economy.
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.
Did anybody else notice the price dropping the same as the consumption rate? No? Yeah, me neither.
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.
Bogus govt data.
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/.
Check the ordinate range.
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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.
Yet the price continues to climb.
When did this country become a bunch of insider aholes that manipulate the market?
Amen, and on top of that production is UP.
Must have sold a lot more Chevy Volts than we thought./sarc
The book “How to lie with statistics” comes to mind.
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.
Combination of higher fuel efficiency and flatlining miles driven:
‘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.
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
Here’s another classic Zero Hedge kook piece:
Price goes up, demand goes down. The demand for gasoline was always more elastic than the economists think.
Gotta be all of those new electric cars. Just has to be.
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.
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?
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.”
islamism regardless how it’s cut.
Not unexpected, when people dont 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.
“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...
If he’s a lib he was already suffering from dementia.
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...
My first reaction too. I don't believe it.
Oklahoma credit cards .....
ZH is looking like young teenagers in their moms’ basements using vivid imaginations on random on-line ‘facts’ without context.
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.
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.
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.
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.
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. Ive 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...
More meaningless, misleading and incorrect government data.
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?