Why I am not invested in OIL … Plunging Petroleum and Gasoline Usage

The following chart shows U.S. petroleum and gasoline usage for December-February compared with the same three months in prior years. Chart is courtesy of reader Tim Wallace.

Note that petroleum usage is back to December 1995 thru February 1996 levels. Gasoline usage is back to December 2001 thru February 2002 levels.

Contrary to popular belief, the decline in gasoline usage has little or nothing to do with cash-for clunkers or improved gas mileage in cars unless one fantasizes that gas mileage improvements started precisely in 2007.

Wallace comments “If this trend lasts for the rest of the year, Obama’s stated goal of a 15% reduction in greenhouse gases based off 2005 numbers may be met this year instead of his 2015 goal.

via Mish’s Global Economic Trend Analysis: Another Plunge in 3-Month Rolling Average of Petroleum and Gasoline Usage.

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