4 ms·

I wonder if companies continue optional wfh, would that make a dent in the demand for gasoline.

by nine_zeros 5y ago

phendrenad2 5y ago
Except for all the doordash.
chewbacha 5y ago
It might be a wash, HVAC is more efficient in office buildings than in individual homes.
- aperson_hello 5y ago
  But crude =/= natural gas! Especially outside of the Europe markets
- toomuchtodo 5y ago
  The vast majority of electricity is not generated from oil unless you’re in a remote area or an island (Hawaii). Edit: This upward price pressure might really move the needle on utility storage and renewables for these locations, depending on how long this price spike lasts.
- chipsa 5y ago
  Mu? Not sure how it follows.
- deleted 5y ago
  [deleted]
gruez 5y ago
Probably not much. Eyeballing this chart[1], it looks like "Finished Motor Gasoline" dropped from pre-pandemic levels of around ~9000 Mbbl/d to around ~8000 Mbbl/d around jan 2021, which was presumably peak WFH/lockdown. That translates to a drop of 11.1%. According to another chart[2], "motor gasoline" makes up 44% of oil supplied, with 96% going to transportation. Multilpying those numbers out, we find that for the US, reinstituting WFH/lockdowns similar to the ones in effect in jan 2021 would cause crude consumption to go down by 4.69%. Presumably "optional WFH" will have a lower impact than this, because of people not choosing to WFH, or people using their vehicle for leisure activities. [1] https://www.eia.gov/dnav/pet/pet_cons_wpsup_k_w.htm https://www.eia.gov/dnav/pet/pet_cons_wpsup_k_w.htm [2] https://www.eia.gov/energyexplained/oil-and-petroleum-products/use-of-oil.php https://www.eia.gov/energyexplained/oil-and-petroleum-produc...
- throwthere 5y ago
  Whoa based on that the us uses more petroleum than China and India combined. Is that right?
  - shellfishgene 5y ago
    The US has about as many cars as China and India combined, so that would make sense. I was very surprised how few cars there are in India, about 30M, US has 285M or so.
lotsofpulp 5y ago
As oil prices go higher, I assume the shale oil extraction will once again become economical in US/Canada, so supply will come online to stabilize the prices by $5 to $6 per gallon. I am just guesstimating, but I wonder what the real price point is at which shale becomes economical again.
- dd36 5y ago
  It’s been economical. Investors have been preaching discipline and lower dev capex with funds going to higher payouts to investors. If it stays in the ground during lower priced periods, it can come out during times like this.
- empressplay 5y ago
  Typically $100 USD a barrel

I wonder if companies continue optional wfh, would that make a dent in the demand for gasoline.

phendrenad2 5y ago

Except for all the doordash.

chewbacha 5y ago

It might be a wash, HVAC is more efficient in office buildings than in individual homes.

aperson_hello 5y ago
But crude =/= natural gas! Especially outside of the Europe markets
toomuchtodo 5y ago
The vast majority of electricity is not generated from oil unless you’re in a remote area or an island (Hawaii). Edit: This upward price pressure might really move the needle on utility storage and renewables for these locations, depending on how long this price spike lasts.
chipsa 5y ago
Mu? Not sure how it follows.
deleted 5y ago
[deleted]

gruez 5y ago

Probably not much. Eyeballing this chart[1], it looks like "Finished Motor Gasoline" dropped from pre-pandemic levels of around ~9000 Mbbl/d to around ~8000 Mbbl/d around jan 2021, which was presumably peak WFH/lockdown. That translates to a drop of 11.1%. According to another chart[2], "motor gasoline" makes up 44% of oil supplied, with 96% going to transportation. Multilpying those numbers out, we find that for the US, reinstituting WFH/lockdowns similar to the ones in effect in jan 2021 would cause crude consumption to go down by 4.69%. Presumably "optional WFH" will have a lower impact than this, because of people not choosing to WFH, or people using their vehicle for leisure activities. [1] https://www.eia.gov/dnav/pet/pet_cons_wpsup_k_w.htm https://www.eia.gov/dnav/pet/pet_cons_wpsup_k_w.htm [2] https://www.eia.gov/energyexplained/oil-and-petroleum-products/use-of-oil.php https://www.eia.gov/energyexplained/oil-and-petroleum-produc...

throwthere 5y ago
Whoa based on that the us uses more petroleum than China and India combined. Is that right?
- shellfishgene 5y ago
  The US has about as many cars as China and India combined, so that would make sense. I was very surprised how few cars there are in India, about 30M, US has 285M or so.

lotsofpulp 5y ago

As oil prices go higher, I assume the shale oil extraction will once again become economical in US/Canada, so supply will come online to stabilize the prices by $5 to $6 per gallon. I am just guesstimating, but I wonder what the real price point is at which shale becomes economical again.

dd36 5y ago
It’s been economical. Investors have been preaching discipline and lower dev capex with funds going to higher payouts to investors. If it stays in the ground during lower priced periods, it can come out during times like this.
empressplay 5y ago
Typically $100 USD a barrel