In this week's report: (click this link to access an online copy of the attached PDF)

The Economics of Peak Oil from Denver & more. (page 1 )

Oil prices and the economy. (page 2 )

US oil pipelines are huge storage tanks. (page 3 )

Distillate demand still isn't showing any signs of life.

Financial Times (Oct. 20^th) – "A quarterly statement from CSX, the US railway operator seen as a bellwether of the country's industrial and trade activity, points to weak distillates demand. CSX locomotives used 18 per cent less fuel in the most recent quarter than in the same period a year ago." This is not a sign of a robust economy.

Through August US airline jet fuel consumption is down an average of 12.75% year-over-year according to the US Bureau of Transport Statistics report. This drop is on top of a more than 4% decline in 2008 from 2007 levels.

These two fuels are the number two and three uses of oil behind gasoline in the US. If they were not down as much as they are US oil consumption would not have nearly the magnitude of decline given the consistent 9 million barrels per day of gasoline demand.

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