7. OIL
Oil demand
Oil is by far the largest energy source consumed in the United States. In 2018, total oil consumption 4 was 20.8 mb/d, the highest record since the 2008 financial crisis (Figure 7.8). Over 2007-12, there was an overall decline in US oil consumption due to various factors such as high oil prices, the global economic downturn and energy efficiency improvements, particularly vehicle fuel economy. Since then, oil consumption has started to pick up again, registering a cumulative 11% increase over the last five years, mainly due to an economic recovery as well as abundant domestic oil supplies that pushed global oil prices down.
Figure 7.8 US oil consumption by product, 2008-18
mb/d |
|
|
|
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
|
|
Other products |
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residual fuels |
|
18 |
|
|
|
|
|
|
|
|
|
|
16 |
|
|
|
|
|
|
|
|
|
Other gasoil |
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diesel |
|
12 |
|
|
|
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
|
|
Jet and kerosene |
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motor gasoline |
|
6 |
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
Naphtha |
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LPG and ethane |
|
0 |
|
|
|
|
|
|
|
|
|
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
IEA (2019). All rights reserved.
Oil consumption has been on the rise in the last five years, as the economy recovered and abundant supplies pushed oil prices down.
Note: Total demand includes refinery fuels and bunkers and exclude backflows from the petrochemical sector. Source: IEA (2019b), Oil Information 2019, www.iea.org/statistics/.
Motor gasoline is the most consumed oil product in the United States. Motor gasoline demand has remained stable at around 9.1 mb/d, and accounted for 45% of total demand in 2018. In second place, diesel has grown both in absolute volume (16%) and share (2%), but not as fast as LPG and ethane, with the latter being a competitive feedstock for the growing US petrochemical sector. In 2018, LPG and ethane recorded a historical high level of demand at 2.9 mb/d, a 46% increase from a decade ago, and the most significant growth among all oil products. Other gasoil (in addition to gasoil that counts as diesel), residual fuels and minor products have all decreased in terms of absolute volumes and shares over the same period.
By sector, transport is by far the largest oil-consuming sector, accounting for 70.7% of total oil consumption in 2017, followed by industry (17.8%), which includes the booming petrochemical industry (9.4%), other energy (5.7%), and minor sectors with less than 5% each (Figure 7.9). The increase in total oil consumption in 2012-17 mainly came from the transport sector, which saw a 6% increase while other sectors declined slightly. The largest declines came from heat and power generation (8%) and other energy (14%).
4 The US Energy Information Administration uses product supplied as a proxy for US petroleum consumption.
134
IEA. All rights reserved.