The high price of oil is not having a noticeable effect on U.S. crude oil production. We continue our descent into the abyss.
It is having an effect on imports though. The shaded area shows our last recession. It isn't easy to get Americans to slow our consumption of oil, but it is possible apparently. I don't know about you, but I'm certainly driving less.
See Also:
Predictions of Doom (The Chart)
Source Data:
EIA: Petroleum
St. Louis Fed: Population: Mid-Month
National Bureau of Economic Research, Inc.
Mark, I don't know if the imports will continue to decline or not although I think they may to some degree as the economy slows but in the last quarter of the year imports fall to some extent because refiners have to pay taxes on their inventory so it is not in their best interest to import more the they have to. I have been driving less as well though as prices where I live are back up to Katrina levels.
ReplyDeleteKevin
Prices in Britain are far higher than yours, but still the fuel cost for many people is quite a minor part of the total cost of running a car.
ReplyDeleteKevin,
ReplyDeleteWhen a nation known for its love of cars cuts back on its driving, I'd expect to see consumer confidence buckle. Hey, what do you know? Consumer confidence is buckling.
dearieme,
We'd be far better off in America right now if we would have had your tax structure on gasoline a long time ago. We've been encouraged to sprawl (in a most wasteful manner) and drive larger vehicles (in a most wasteful manner).
I agree with you about the costs of owning a car though, especially mine. I fill the tank about once every other month. The car mostly just sits in the garage gathering dust.