Peak Oil News and Message Boards

The question has been for some time now been, is the excess inventory from oversupply or under demand? In turn this begs another question and that is why would producers be consistently oversupplying the market, when all that "dead" excess inventory represents expenses and no profits.
So one must deduce logically that the problem is under demand and they are simply producing to the max to both garner as much revenue as possible and to hopefully see a rebound in demand at some point.
All of which validates the Etp and its contention that demand will be inexorably falling in conjunction with a withering oil industry. Hence the oil price refusal to increase and conversely continues to decrease

"So one must deduce logically that the problem is under demand and they are simply producing to the max to both garner as much revenue as possible and to hopefully see a rebound in demand at some point."


There can be no doubt about what is happening, demand has tanked. If we look at the EIA's data it tells us that refinery input has been going up for the last 12 years while refinery output has been going down. It is taking more, and more crude to produce less and less finished product. With finished product inventories hitting record highes demand must be hitting record lows. It looks like the whole thing is running right on schedule.

click to enlarge, and save this before it evaporates
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EIA Figure 3.2, Refinery and Blender Net Inputs and Net Production (Million Barrels per Day)

https://www.eia.gov/totalenergy/data/mo ... sec3_4.pdf

The EIA graphs will not evaporate.

Refinery Net Production
http://www.eia.gov/dnav/pet/pet_pnp_ref ... mbbl_m.htm
Refinery & Blender Net Input
https://www.eia.gov/dnav/pet/pet_pnp_in ... mbbl_m.htm

What a doofus. Why do you persist in this idiocy? Your numerator is refinery and your denominator is refinery and blender.

I see Short's graphs as being correct. It is the official EIA numbers of input and output plotted on to a graph. It clearly show that more crude oil input needed every year to produce the same refined output.
Also, it took me a while to find out where this tread had been moved to. Why does every tread shortonoil post on have to be moved ?

How many sock puppet accounts must you create to complain about threads being moved?