• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 2 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 12 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 5 days The Federal Reserve and Money...Aspects which are not widely known
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 9 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 12 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 13 days Goldman Betting on Cryptocurrencies
  • 16 days Сryptocurrency predictions
Ross McCracken

Ross McCracken

Ross is an energy analyst, writer and consultant who was previously the Managing Editor of Platts Energy Economist

More Info

Oil For Power: Bucking A Long-Term Trend

Oil demand for power generation has been in long-term decline since 1990 as countries have gradually displaced oil with cheaper feedstocks, primarily coal and natural gas. Since 1990, this process has freed up some 2 million b/d of oil for other uses. However, oil for power still accounts for just over 4 million b/d of demand or 4-5% of global oil consumption.

There are two reasons why oil-for-power use will buck its long-term trend in both 2019 and 2020, even though the secular forces pushing it slowly towards obscurity are now more powerful than ever before.

Iran sanctions

Iran’s use of oil for power generation is likely to rise sharply this year as a result of the re-imposition of US sanctions on the country’s crude exports from November 5 last year. Iran’s crude exports were estimated at between 1.1-1.3 million b/d in January and February, according to industry sources, down from 2.5 million b/d in April 2018 just before Washington withdrew from the 2015 Iran nuclear deal.

Iran’s internal response to sanctions in the past has been to increase oil burn for power generation, maximise refinery throughput and use petrochemical plant to produce oil products such as gasoline. In 2010, Iran’s oil use in power generation was about 225,000 b/d, but, by 2013, at the height of the earlier sanctions period, this had more than doubled to 471,000 b/d.

Since then its ability to export both gas and electricity to Iraq has increased.…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News