Record High US Gasoline Consumption and Sales of Muscle Cars, SUVs and Pickup Trucks

I’ve written before about demand destruction, but with gasoline prices at historic lows right now we are seeing the opposite: demand rebound. Gasoline sales in the United States are approaching all-time highs last seen right before the “great recession.” People are taking advantage of “cheap” gasoline and driving more. As we slowly recover from the recession (economists tell us the recession ended 5 years ago, but it seems like many areas still are recovering) more people are working and commuting more miles.

US Gasoline Consumption

US Gasoline Consumption

Car sales are reaching record highs. Americans seem to have completely forgotten $5 gasoline are are buying more gas guzzlers than ever before. Below I charted out the sales of 21 models of muscle cars, full-sized pickup trucks and large SUVs with an average fuel economy amongst them of just 17 MPG. Since 2010, sales of these 21 models have put nearly 18 million new fuel-hungry vehicles on America’s roads. With an average fleet turnover time of 23 years (from a 4% scrappage rate), these cars will be on the road for many years to come.

Sales of Muscle Cars, SUVs and Pickup Trucks

Sales of Muscle Cars, SUVs and Pickup Trucks

 

Part of the reason for this increase in fuel-hungry vehicle sales is sub-prime lending, which John Oliver does a great job of explaining:

 

With global oil investment budgets being slashed by over $1 trillion dollars, it seems likely that the market will re-balance itself of the next few years and millions of Americans will be stuck with fuel-hungry vehicles as gasoline prices rise again.

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Will Martin is an energy analyst and expert on peak oil and alternative currencies. He is an MBA graduate of Cornell University, where he was a Roy H. Park Leadership Fellow and concentrated on studying sustainability in business through the school’s Center for Sustainable Global Enterprise. Prior to his MBA, Will worked in the energy industry, living in Singapore, Houston and Dubai. Will is a recipient of the 2012 “Pioneer Award” from the Association for the Study of Peak Oil and Gas (ASPO-USA). He currently works as a carbon trading commercial adviser in the San Francisco Bay Area. Will is a bitcoin enthusiast and in 2014 published the book “Anonymous Cryptocurrencies,” which became a #1 best seller in 3 Amazon categories and was the first book to be sold on a decentralized marketplace.

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