Saturday, July 19, 2008

Prices Up Equals Demand Down For 2008

When oil flows ... freedom grows here in the United States. Image from an animation showing how oil is retrieved through processes used on an offshore oil drilling rig. Image Credit: Still from video provided by the API (2008)

Prices Up Equals Demand Down For 2008

U.S. oil demand was significantly down for the first six months of 2008, API said today in its Monthly Statistical Report. While U.S. refiners churned out record and near-record amounts of oil products, imports – especially product imports -- fell substantially.

What is the most interesting detail in these stats is what is not stated … that this demand fell without any U.S. Government intervention. These figures fell due to the forces of supply and demand when the overlay of a sudden price increase takes effect.

API statistics manager Ron Planting said, “At 20.08 million barrels per day, total demand was the lowest in five years. And the decline in gasoline demand was the first significant one recorded in 17 years. Higher pump prices and a slowing economy were undoubtedly factors.”

This excerpted from a press release from the American Petroleum Institute -

U.S. oil demand drops in first half of 2008

Bill Bush - API (American Petroleum Institute) - Updated:July 18, 2008

Deliveries of all oil products – a measure of demand – fell 3.0 percent compared with the same first-half-year period in 2007, with gasoline deliveries slipping 1.7 percent. For the preceding three years, oil demand had essentially held steady.
At 2.0 percent, the second-quarter decline in demand for gasoline was even greater than for the first six months. However, the 1.8 percent decline for all products for the last three months, compared with the same period a year ago, was less in part because of a 2.1 percent increase in demand for distillates, which includes diesel fuels and home heating oil.
Overall U.S. oil imports, including crude oil and oil products, sank to their lowest first-half level since 2003, at less than 13 million barrels per day.

Crude oil inventories declined to 301 million barrels at the end of June, down 54 million barrels from last year’s recent-year record and the lowest mid-year level since 2003. Consistent with relatively stronger demand for diesel fuel than for gasoline, gasoline inventories ended June up from a year ago while diesel inventories were down. U.S. crude oil production fell by 2.2 percent for the first half of 2008 compared with 2007.

Reference Here>>

If Energy = Freedom … does this mean that the demand for freedom is down as well?

One wonders what will happen to our hard fought freedoms now that our Democrat leaders in Congress have declared their "No-Drill" petroleum policy to coincide with their intended desire to attack the oil companies with a windfall profits TAX.


xyu said...

it is bad news unfortunately:

it means and we all know it

that WE ARE GROUNDED. People just got partially immobilized((

well, some of us
some of us bought scooters,
some of us figured ways to add alcohols(mostly ethanol. methanol is corrosive) in fuel tank
some of us learned how to make biodisel in their own garage
some of us car-pool
some of us drive slow


there is NO market for petrolium products

dont fool yourself.

if we want free fuel market- we should mandate it thru mandating a flex-fuel capability for every single car

then a small manufactureer of methanol from local garbage dump will compete with soviet gangster concern LUKOIL


drilling will only empower soviet gangsters and their arab helpers by continuing their monopoly on oil

USA only has 3% of oil reserves in the world

but we have 25% of COAL! AND BILLIONS OF BIOMASS!!

We are loseng the energy war launched against us out of the profound stupidity of our population and treason of the establishment both rep and dems

Edmund Jenks said...

We need to be pushing all of our ENERGY chips to the middle of the table, in that we need to push and expand energy development on all fronts - emerging technologies and traditional petroleum solutions.

Energy helped to make our lives easier and our country the most powerful in the world … the lack of energy, any energy, will degrade everything.

Drilling WILL make us stronger and less dependent to the speculative costing forces that beset us now.

The challenge should be:

If we can put a man on the moon, then we can find, capture, develop, refine, and use energy, any energy, to have our lives lived in greater freedom and with greater ease.