Nice trick
Seen at Seth's blog:
So they said on the radio today that for the first time ever, oil consumption worldwide is exceeding oil production.
That's a pretty neat trick. How exactly can you consume more oil than is produced?
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Thursday, August 25
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5 comments:
that's an easy one.
every year on Christmas, people use far more Christmas ornaments than were produced that day.
If we draw down reserves, we can consume more than we make... for a while, at least.
then panic sets in.
When we draw down reserves, prices go up, right? If they go up high enough, demand goes down...
So, I see what you mean, but I stand by what I said: we can't be consuming oil that was never produced. ;)
You are right when you say "we can't be consuming oil that was never produced". Yet, that's not what they are really saying in the news. What they mean is that we are 'currently' drawing into the reserves, which simply means 'current' consumption is higher than 'current' production.
True. Hence the ;) at the end of my last comment.
You may be getting lost in the weeds . . . consider Seth's point as being: are you changing your consumption patterns? My answer is--yes.
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