7. OIL

Figure 7.9 US oil consumption sectors, 2007-17

IEA (2019). All rights reserved.

Transport remains the largest oil-consuming sector, with a booming petrochemical industry increasing demand for feedstocks.

*Industry includes non-energy consumption. **Other energy includes consumption in refineries.

***Commercial includes commercial and public services, agriculture, forestry, and fishing.

Note: Consumption by sector data are presented in energy units (million tonnes of oil equivalent [Mtoe]) for comparisons over different fuels.

Source: IEA (2019a), World Energy Balances 2019, www.iea.org/statistics/.

Increasing biofuels demand in the United States

In 2018, bioenergy and waste5 accounted for 4.8% of TPES in the country. The largest share of bioenergy results from the usage of primary solid biofuels to generate electricity and heat in power plants and in the industrial sector, mainly in the pulp and paper sector. The other main use of bioenergy is biofuels in the transport sector. Biogasoline, the most common of which is ethanol, is the largest biofuel, and the United States is a worldleading ethanol producer. In 2017, biogasoline accounted for 5.2% of total energy use in transport, which was by far the highest share among IEA member countries. Biodiesel6 consumption has also increased rapidly in recent years (see Chapter 5, “Renewable Energy”).

Outlook of oil supply and demand

By 2024, total oil supply in the United States will reach close to 20 mb/d. Already a top global producer of oil products, the United States will be self-sufficient consumer of oil with the anticipated level of production. Crude oil production is expected to rise as the growth from LTO will more than offset declines in conventional oil supply. NGLs will also continue to grow above 5 mb/d in 2024.

Outside of the tight oil patch, crude oil production will decline in the near future. Up to 2020, output from the Gulf of Mexico is expected to remain steady at around 1.7 mb/d, thanks to the start-up of five projects and the expansion of two existing assets. Other conventional supply, from California and Alaska, will fall further. The administration

5Including industrial waste (non-renewable), and renewable and non-renewable municipal waste.

6Includes biodiesel of diesel quality produced from vegetable or animal oil, biodimethylether, Fischer-Tropsch produced from biomass, cold pressed bio-oil and all other liquid biofuels that are added to, blended with or used straight as transport diesel.

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ENERGY SECURITY

IEA. All rights reserved.