The Climate Change Activist's Nightmare: Falling Oil Prices

In mid-2008, the price of oil plummeted from over $140/barrel to just under $40/barrel by the end of the year (noted by the shaded area in the graph below).

Then, prices started to rebound and eventually topped out at $107 in mid-2013.  Interestingly, this fall and then a rise in oil prices greatly affected the daily U.S. consumption of oil.

In 2008, when oil prices bottomed out, Americans consumed 55,108.1 gallons of gasoline per day.  Eventually, as oil prices rose, consumption fell to just 24,722.5 gallons per day in 2013.  Thus proving a direct correlation between oil prices and consumption.

Now, since mid-2014, oil prices have fallen like a rock once again.

In fact, oil is falling so fast the Federal Reserve Economic Data database is unable to keep up with the changes.  This chart shows oil at around $55/barrel.  As, of this writing, it is actually trading below $49. But, putting this aside.  If oil is keeps falling, gasoline consumption is sure to rise once again.  Maybe even a doubling of the 24,000 gallons/day that was seen in 2013.  And, this is what keeps global warming activists up all night.  That's because, simply, if you double consumption, you double the carbon foot print.  And remember, gasoline prices aren't just falling in the U.S. but also, world wide. So, the world's carbon footprint is also sure to rise.

References:

U.S. Energy Information Administration: Refiner Motor Gasoline Sales Volumes: http://www.eia.gov/dnav/pet/pet_cons_refmg_d_nus_VTR_mgalpd_a.htm

Federal Reserve Economic Data (FRED):  Interactive Graph: Crude Oil Prices: West Texas Intermediate (WTI) - Cushing, Oklahoma: http://research.stlouisfed.org/fred2/graph/?id=ACOILWTICO,


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