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Why Is Gasoline Consumption Tanking?
Of Two Minds ^ | 2/10/2012 | Charles Hugh Smith

Posted on 02/10/2012 10:49:46 AM PST by VA Voter

What other plausible explanation is there for the decline from 42.4 MGD in July 2011 to 30.9 MGD in November 2011 other than a dramatic decline in discretionary driving? That 27% drop in a few months in unprecedented, except in times of war or sharp economic contraction, i.e. recession.

If we stipulate that vehicles and fuel consumption are essential proxies for the U.S. economy, then we can expect a steep decline in economic activity to register in other metrics within the next few months.

Such a sharp drop would of course be "unexpected" given the positive employment data of the past few months. But as the data above shows, employment isn't tightly correlated to gasoline consumption: gasoline consumption reflects recession and growth.

In other words, look out below.

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


TOPICS: Business/Economy; News/Current Events
KEYWORDS:
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To: LonePalm

For sure, people can not afford money for extra gas because it is so expensive now. People can not afford to shop, either. Then we have millions uemployed... The watermelons are very happy with their nasty selves. This is what Obama said he was going to do.


21 posted on 02/10/2012 11:16:45 AM PST by SaraJohnson
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To: VA Voter

But you don’t see the cost of gasoline and diesel in this country dropping to a level on par with the drop in demand.


22 posted on 02/10/2012 11:17:10 AM PST by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: VA Voter

Another reason: My family bought a 2009 Hyundai Accent (dinky little econobox) to replace our full-sized Chevy conversion van in long-distance driving. The conversion van was consigned to in-town service; the savings in fuel costs pays the car payment.


23 posted on 02/10/2012 11:18:26 AM PST by Oberon (Big Brutha Be Watchin'.)
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To: Bronzewound
Also, 11% fewer people driving to work.

Well, D'UH!!

Only actually the number is closer to 20%, if you count ALL adults who have exhausted their unemployment, given up on finding a job, underemployed, or recently "joined" the job market.

24 posted on 02/10/2012 11:21:48 AM PST by Publius6961 (My world was lovely, until it was taken over by parasites.)
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To: VA Voter

Here’s how I decreased my gas consumption. We have two drivers (wife and I) and three vehicles, They are:
2010 Ford Focus
2007 Nissan Titan
1969 VW Beetle

The Titan sits in the driveway. Wife drives the Focus, uses about 9 - 10 gallons a week. I drive the VW, use about 5 - 7 gallons a week. If I drove the truck, I would burn between 12 - 15 gallons a week.

So now the truck is used only when a truck is needed, and I suffer the wonderful anemic engine smelling lack of heat of a classic air cooled Volkswagen.


25 posted on 02/10/2012 11:26:50 AM PST by fredhead (Vegetarian - Old Indian word for poor hunter.)
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To: VA Voter

Is gasoline consumption really tanking or, is this just another case of “funny numbers” from the government?

After all, its easy to reach 8.3% unemployment if over 1,000,000 people are dumped from the workforce in one month.


26 posted on 02/10/2012 11:26:58 AM PST by NRG1973
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To: VA Voter
Here is my take.
We know from past experience Americnas will continue business as usual when gasoline is $3/gal. Been there done that.

We know when gasoline hit $4/gal they won't readily pay it; and they slowed down the consumption. Been there done that.

So somewhere between $3 and $4/gal is the right sweet spot for gouging.

However Americans cut back driving at $4/gal when the economy was fairly good.
The economy is not good now so anything over $3/gallon is going to see a pullback in gasoline consumption.

If gasoline goes up to $4/gallon it will further criple the weaker economy.
If it were ever to reach $5/gal as some predict, we would end up in a depression. - Tom

27 posted on 02/10/2012 11:27:24 AM PST by Capt. Tom
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To: nascarnation

The big gains in fuel efficiency are behind us. Used to be a typical car averaged say 12 mpg combined highway/local driving. Then it jumped to 18-22 mpg. Now the automakers are using every kind of expensive gimmick as well as drastic weight reductions to squeeze a few marginal mpgs more to meet congressional mandated fleet mileage figures.

In addition, many of these little sedans can transport more that 2 adults and 2 children making the car of low utility except for basic work commutes.


28 posted on 02/10/2012 11:41:52 AM PST by Tallguy (It's all 'Fun and Games' until somebody loses an eye!)
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To: VA Voter

I moved my office to less then a mile from my house.

$3.50 a gallon is insane only if a Republican is in the white hut. You don’t hear the left complain about the price of gas now. Why is that?


29 posted on 02/10/2012 11:47:23 AM PST by woodenickel
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To: VA Voter

Lawnmowers. It’s the lawnmowers. Last July, they were heard from dawn to dusk. Now, I open my window, I don’t hear a single lawnmower. Wait until May. Those numbers will climb again.


30 posted on 02/10/2012 11:48:58 AM PST by weeder
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To: weeder

Lawnmowers? lol.


31 posted on 02/10/2012 12:02:55 PM PST by VA Voter
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To: bigbob

“Because we’re all driving our new Volts?” /sarc

I, too, was amazed that 600 “O”-Volts being sold each month would have this much impact on the use of gasoline. Now, if they would just add a teeney weeney windmill on top....what, another 20 to 30% drop???


32 posted on 02/10/2012 12:03:26 PM PST by radioone
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To: dirtboy

I totally agree with your assessment.


33 posted on 02/10/2012 12:05:19 PM PST by C. Edmund Wright
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To: weeder

Brilliant! It’s like a bright light shone and I could see the truth of it all. Wait a minute.......what about snowblowers?


34 posted on 02/10/2012 12:14:21 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: LC Gladiator

I second that emission.


35 posted on 02/10/2012 12:14:30 PM PST by JediJones (Newt-er Romney in 2012!)
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To: VA Voter

These upgrades have long paid for themselves.

K&N Air Filter
Mobil 1
Insulated air intake
50psi High-perf tires/wheels
Low restriction exhaust
5-speed (orig equip)


36 posted on 02/10/2012 12:15:33 PM PST by bicyclerepair ( REPLACE D-W-S ! http://www.karenforcongress.com)
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To: VA Voter

I am tired of being ripped off and have found other ways and things to do.


37 posted on 02/10/2012 12:20:04 PM PST by mountainlion (I am voting for Sarah after getting screwed again by the DC Thugs.)
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To: blueunicorn6

Their gas consumption is cancelled out by weedwhackers and outboard motors in the summer. That’s my theory, and I’m stickin’ to it.


38 posted on 02/10/2012 12:20:45 PM PST by weeder
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To: Tallguy

Yes the low hanging fruit has been picked.

My new Chevy Cruze Eco gets similar mileage to my 15 yr old Saturn - about 40 mpg highway.

The Cruze is actually about 400lb heavier though, and it is far quieter and smoother riding, and likely much more crashworthy.


39 posted on 02/10/2012 12:20:53 PM PST by nascarnation (DEFEAT BARAQ 2012 DEPORT BARAQ 2013)
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To: VA Voter

The “alternative” locomotions are not going to benefit from either major drops in gasoline demand, or major improvements in MPG for gasoline powered vehicles (which helps reduce demand forces), either, or both which will tend to influence the retail gasoline market (over time) to lower prices or less steep increases or both. (that’s without even mentioning the coming rise in domestic supply of crude)


40 posted on 02/10/2012 12:23:37 PM PST by Wuli (ui)
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