Bloomberg Opinion -- U.S. Oil Production Is Booming. So Is Demand ...............................
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excerpts :
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The US will consume an annual average of 20.59 million barrels of oil a day in 2025, the highest in 18 years, according to current trends.
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High US per capita oil consumption is driven by several factors, including a rich population living in sprawling suburbia and poor public transport.
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Until Trump won his second term, the American energy industry had largely accepted that the country’s oil consumption all-time high, set in 2005 at 20.8 million barrels a day before the onset of the global financial crisis, was unassailable. Rising efficiency meant that, after a brief recovery following the pandemic, America was a post-peak oil demand nation, like other rich countries such as Germany, France and Japan. Thus, only a few months ago, the International Energy Agency said that US consumption would fall every year from 2025 onwards, reaching 20.01 million barrels a day by 2030.
Today, the downward path looks uncertain. Can US oil demand grow further, setting a new high? Many -- me included -- think there’s a good chance. The most updated forecast from the IEA, looking only up to 2026, already shows a small increase next year.
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The internal composition of that demand is changing. Back in 2005, when American overall oil demand set its record, gasoline and diesel were at the forefront of the country’s usage growth. Today, consumption of both fuels is down from the most recent peaks. Instead, the fastest-growing fraction of the barrel is ethane, used overwhelmingly as a feedstock in the petrochemical industry, where it becomes the building block of plastics. US jet-fuel demand is also growing rapidly.
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