Oil Use Drops, Dramatically

Where do you think all this reduction in oil use is headed? I you guessed higher taxes, you would be correct.

Total U.S. petroleum and other liquids consumption is projected to shrink by almost 500,000 bbl/d in 2008 based on prospects for a weak economy and continuing high crude oil and product prices extending into 2009 (U.S. Petroleum Products Consumption Growth).

Preliminary June and July 2008 weekly survey data indicate that year-over-year declines in total consumption, which began in August 2007, have narrowed since earlier this year. During the first 5 months of 2008, total petroleum consumption fell by an average of almost 900,000 bbl/d from the same period in 2007. During June and July, the year-over-year declines narrowed to just over 400,000 bbl/d. The year-over-year declines in consumption are not expected to be as large over the forecast period, with 2009 average total consumption about 120,000 bbl/d lower than the 2008 average.

U.S. oil demand during the first half of 2008 fell by an average 800,000 barrels per day compared with the same period a year ago, the biggest volume decline in 26 years, according to the EIA.

The Energy Department's analytical staff predicts continued falling oil demand, and for the first time is predicting that U.S. petroleum consumption in 2009 will be lower than 2008, which would be a drop in annual demand for three years in a row.

We now have the effect of high energy prices starting to really bite. Economic activity is falling, demand for energy is falling, the economy is falling. Won't be long before the recession beckons. All avoidable, if we started drilling, but the Democrat Marxists want high energy prices, constricted economy and no growth for America.

Never thought I would see the day when the liberals were out in the sunshine for all to see what they have in store for America. I never have understood why anyone would vote for a Democrat, unless they are not sane -- I'm thinking.

BTW, world demand is also dropping as economies around the world begin to contract. The lesson here, the dollar is rising, as most think America will lead the way out of the looming disaster. Not with Obama in charge.

Demand is down, supply is down, the causality is the U.S. economy. Democrat Marxist's recession ahead.

EIA report is here.