Daily Energy Report

US miles traveled vs. motor fuel demand, IRENA world energy transitions outlook 2023, Russia’s oil and gas output, Iraqi northern crude exports, California penalty for price gouging, and more

CHART OF THE DAY

Figure (1)

Commentary:

Figure (1) above shows US miles traveled as estimated by the US Federal Highway Administration (FHWA) vs. motor fuel demand (gasoline and diesel) as reported by the US Energy Information Administration (EIA).  Miles traveled are the 12-month-moving average in billion miles (bm), while fuel demand is actual monthly and the 12-month moving average in million barrels per day (mb/d).  The chart clearly shows the impact of the lockdowns during the COVID-19 pandemic in the early months of 2020.

A strong correlation between miles traveled and fuel consumption existed before 2015.  Such a correlation, however, significantly weakened afterward. We explain below the factors behind this sudden divergence. 

EOA’s Main Takeaway: