Below is a post from Mike Shedlock showing that gasoline and petroleum usage in the United States is plunging. This is completely counter to what you would expect if employment is growing dramatically and the economy is recovering strongly as proclaimed by the government and their media mouthpieces. If more people have jobs, there should be more cars on the road driving to those jobs. Auto sales are supposedly booming as the annual rate of sales is above 14 million versus below 10 million in 2009. My own eyes confirms the plunge in gasoline usage. Anyone who has been reading this blog for the last three years knows I’ve regularly complained about my shitty commute. Well, over the last three months my commute isn’t so shitty anymore. My regular commute was often an hour or more. Now my regular commute is always under 50 minutes. I’m travelling at the same time on the same roads. My drive home at night is particularly pleasant, with me getting home in 45 minutes on a regular basis. There are clearly less vehicles on the road. The economic recovery story is a crock of shit. The 243,000 added jobs in January is a lie. Do you believe you eyes or the government reported lies?
Inquiring minds are watching a plunge in Petroleum Distillates and Gasoline usage.
Reader Tim Wallace writes
As I have been telling you recently, there is some unprecedented data coming out in petroleum distillates, and they slap me in the face and tell me we have some very bad economic trends going on, totally out of line with such things as the hopium market – I mean stock market.
This past week I actually had to reformat my graphs as the drop off peak exceeded my bottom number for reporting off peak – a drop of ALMOST 4,000,000 BARRELS PER DAY off the peak usage in our past for this week of the year.
I have added a new graph to my distillates report, a “Graph of Raw Data” to which I have added a polynomial trendline. You can easily see that the plunge is accelerating and more than rivals 2008/09 and in gasoline is greatly exceeding the rate.
An amazing thing to note is that in two out of the last three weeks gasoline usage has dropped below 8,000,000 barrels per day.
The last time usage fell that low was the week of September 21, 2001! And you know what that week was! Prior to that you have to go back to 1996 to have a time period truly consistently below 8,000. We have done it two out of the last three weeks.
The second graph once again shows the year on year change in usage of distillates. The Obama “stimulus” package and Fed monetary actions masked the underlying systemic problems.
The third and final graph shows the changes in usage off the peak year of 2007. Once again you can see the effect of the stimulus and how now we are heading below 2008/09 in an accelerating fashion.
Looking at these numbers I believe we are about to have a surge in unemployment – by the end of April latest, possibly as early as beginning of March.
Petroleum Distillates and Gasoline Usage in Barrels per Day
Note that on a best curve fit, petroleum usage is back to 1997 level and gasoline usage is back to 2001 level. Moreover, as Wallace points out, two out of the last three weeks gasoline usage has dropped below 8,000,000 barrels per day.
Year-Over-Year Petroleum and Gasoline Usage (Compared to Peak Usage)
Note the trough of the recent recession, the rebound, and now a sudden plunge in gasoline and petroleum usage once again.
Decline from Peak Usage
A mild winter can explain part of the drop in petroleum usage (heating oil), but it does not explain the declines in gasoline usage or the overall trends.
Mike “Mish” Shedlock