Global Oil Consumption
Industrialized countries are the largest consumers of oil. The countries of the Organization for Economic Cooperation and Development (OECD), account for almost 2/3 of worldwide daily oil consumption. The developed economies use oil much more intensively than the developing economies, and Canada and the United States stand almost alone in their consumption of oil per capita.
Oil consumption in the United States and Canada equals almost 3 gallons per day per capita. Oil consumption in the rest of the OECD equals 1.4 gallons per day per capita. Outside of the OECD, oil consumption equals 0.2 gallons per day per capita. Regionally, the largest consuming area remains North America (dominated by the United States), followed by Asia (with Japan the largest consumer) and Europe (where consumption is more evenly spread among the nations). Asia was the region with the fastest demand growth until the 1998 economic crisis in East Asia. The region's economic upheaval is a central reason for the oil price collapse of 1998. Demand for crude oil is derived from the demand for the finished and intermediate products that can be made from it. Gasoline is the perfect example of a consumer product: available everywhere, purchased often and in easy transactions. Its consumption accounts for almost 45 percent of all oil use. The dominance of gasoline in the oil mix is not new; gasoline has been the most important oil product since the 1920's. The quest to maximize gasoline production has been the driver in the development of refinery technology and design in the United States.
U.S. petroleum demand is projected to increase by an average of 160,000 barrels per day (0.8 percent) in 2005, and by an additional 390,000 barrels per day (1.9 percent) in 2006. Data for the first half of 2005 indicate a 65,000-per-day decline in overall petroleum demand, brought about by slower demand growth, weather-related first-quarter declines in heating oil and residual fuel oil demands, and, most importantly, by weakness associated with the demands for liquefied petroleum gases (LPG) (including propane) and unfinished oil products, particularly in the second quarter.
Despite the low average growth rate for the first half of 2005, U.S. oil demand during the past 2 months has shown some signs of renewed strength. In June and July, total demand grew by an average of about 100,000 barrels per day compared to year-ago levels, with similar growth appearing in the gasoline market and even more robust growth (about 180,000 barrels per day) in distillate fuel oil. For the second half of 2005, a 360,000 barrels-per-day increase in total U.S. oil demand above the second half of 2004 average is expected. Increased growth is likely to be driven by a continuation (and even acceleration) of the strength in motor gasoline demand seen since May, continued increases in jet fuel demand resulting from higher air travel, and weather-related increases in heating oil in the fourth quarter.