Gasoline Demand And Notes From All Over -- May 11, 2022

Most interesting graphic today. Link here. Remember: I don't know if it's true or not -- fact-check, please -- but it's my understanding that President Biden has "green-lighted" US ethanol production, telling refiners they are free to produce as much ethanol as they want. It's so much less expensive and Americans really, really, apparently want more of it. So, here's the graphic, ethanol production, US:

Gasoline demand, link here. Combine this chart with the data that GasBuddy has been reporting all week -- US gasoline demand is dropping fast:

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Rambling -- Notes From All Over

I started blogging about the Bakken in 2007, but started this blog in 2009. I vaguely recall some periods when things were happening so fast I was unable to keep up, but it mostly had to do with the Bakken itself. 

Now, globally, there is so much going on, I'm not sure if we're all aware of all the changes.

Covid-19: coming out of Covid seems so "yesterday," so old, so much history. But it was only April 27, 2022, that Dr Fauci said "we" were out of the pandemic. Fourteen days ago? But because the Kraken was released (Putin's War) about the same time as the end of the pandemic, we had no time to celebrate and the global economy remains in shambles. At least for some. 

Putin's War: two big developments, both of which need to be fact-checked.

• I heard that the Ukrainians have pushed back to the Russian border and are now actually threatening the Homeland; and,
• more and more stories that the Russian economy is already starting to implode. 

Killing the Keystone XL: of course, that's become a metonym for all the missteps the Biden administration has made with regard to US oil and gas. And, of course, we're now paying the price. Of course one can argue whether one can call intentional decisions "missteps."

The diesel story has reached the point where some folks actually predict that diesel on the East Coast will be rationed this summer. The s**t hits the fan in July, 2022. Is the diesel story (today) worse than the gasoline story during the 1979 oil crisis when Biden's doppelganger was president? For those who don't know, western Canadian oil, heavy oil, the oil that would have been carried by the Keystone XL is from where diesel and heating fuel is refined.

From wiki:

The 1979 Oil Crisis, also known as the 1979 Oil Shock or Second Oil Crisis, was an energy crisis caused by a drop in oil production in the wake of the Iranian Revolution. Although the global oil supply only decreased by approximately four percent, the oil markets' reaction raised the price of crude oil drastically over the next 12 months, more than doubling it to $39.50 per barrel. The sudden increase in price was connected with fuel shortages and long lines at gas stations similar to the 1973 oil crisis. 

Let's see: global production, 2022, 100 million bpd; Russian production, 7 million bpd.

Is the plagiarist getting ready to dust off the "Crisis of Confidence" speech:

On July 15, 1979, President Carter outlined his plans to reduce oil imports and improve energy efficiency in his "Crisis of Confidence" speech (sometimes known as the "malaise" speech).

Autos: for investors and traders. Avoid.

EVs: for investors. Avoid. For traders: back up the truck. Periodically. Sell periodically. Repeat.

Streaming: investors liked DIS today; I've not read the report, just the headlines.

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All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.

TESLA: as bad as Tesla has been doing the past few weeks, TSLA dropped another $66 today, and has fallen 30% in the last six months. It's getting so low one has to ask whether Elon Musk can go through with the Twitter deal. For Trump supporters: don't count your chickens before they hatch. This thing is not over yet.