In this must watch Frankly, Nate illustrates how a reduction in the demand for gasoline will not – as commonly believed – result in a 1:1 reduction in the demand for oil.
Are you a fan of beheadings? Are you fond of autocratic regimes? Do you want to help those kooky, lovable Koch brothers purchase another member of Congress? Do you yearn to support Saudi Arabia, Iran, Donald Trump, and Vladimir Putin, but it seems so difficult to give them direct, individual donations? Lucky for you, there’s an easy answer! Just buy gasoline!
Haven’t we been hearing from the oil industry and from government and international agencies that worldwide oil production has been increasing in the last several years? The answer, of course, is yes. But, the deeper question is whether this assertion is actually correct.
It is a slick piece of public relations to convince people to disregard what is right in front of them and believe the opposite. And yet, that is what the oil industry has achieved with an oh-so obviously coordinated campaign.
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