Wednesday, April 6, 2016

Uber threatening to lower oil prices

I think Uber is a threat to oil for the simple reason that millennials have embraced it very dramatically. The millennials are saying 'I really don't need an automobile.' That whole mystique of driving an automobile is lost and it's not coming back.

If you take a look at the average amount of driving that has taken place in the United States in the previous 60 years, it was a very well-defined trend line. We have broken that trend line dramatically. We are way off that trend. And I think this is something that's going to continue for a long period of time. I think Uber takes cars off the road. And I think that has long term bearish implications for oil and the automobile industry.