//
you're reading...
SMIPP

Oil Prices and Oil Demand… i’m calling hacks

Oh, That Makes Sense!

Watching the CNN coverage of President Obama’s press release earlier today got me thinking: I hear all the time about how demand for oil is at a record high, but no one has ever bothered to show me what the correlation is between oil demand and prices at the pump. It wouldn’t be hard to do. Presumably, if the data show a general increase in demand (which will henceforth be called consumption, as that is the industry term), then the data will also show a general increase in price. Now to be clear, it is possible that consumption and price both increase over a period of time, yet no cause-and-effect relationship exists. This is, however, unlikely.

So I set out to find this correlation. Using data from the Bureau of Labor Statistics and the U.S. Energy Information Administration, I made four simple plots.

You can see Price vs Consumption and Production:

 

View original post 429 more words

Advertisements

About SMIPP Ltd.

SMIPP Ltd is a DG Independent Power Plant Private Joint Stock Company. 25-60 MW Gas Turbines Power Generators

Discussion

Comments are closed.

Calendar

May 2012
M T W T F S S
« Apr   Aug »
 123456
78910111213
14151617181920
21222324252627
28293031  
Follow SMIPP Ltd. on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,670 other followers

Categories

share this blog

Bookmark and Share

Archives

Follow me on Twitter

Today In Energy

%d bloggers like this: