• 4 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 5 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 16 hours Something wicked this way comes
  • 3 hours America's Frontline Doctors - Safely Start Living Again!
  • 6 hours France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 23 hours A sneak peak into the US election
  • 5 hours Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 12 hours Permian in for Prosperous and Bright Future
  • 2 days covid. stop the carriers and thus stop the virus.
  • 15 hours Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 1 day California’s Electric Vehicle Dream Has A Major Problem: No
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 2 days Vote Biden for Higher Oil Prices
  • 2 days Ethanol present in gasoline
  • 2 days Is the coal industry on the way out?
  • 2 days Tucker Carlson responds to CDC after agency critiques commentary about mask-wearing
IMF Sees Oil Prices At $40-50 Next Year

IMF Sees Oil Prices At $40-50 Next Year

Oil prices are not expected…

Oil Dependency Climbs As Supply Rises And Prices Fall

(Click to enlarge)

Headlines around electric cars and carbon policy suggest our oil dependency is on a slippery downward slope. Recent data from 2016 suggests the opposite: our worldwide addiction is getting stronger.

Oil consumption versus economic activity (GDP) measures the energy “intensity” or “dependency” of our lifestyles to the wonder-fuel we love to hate. A steepening upward slope implies greater dependency and vice versa.

Before 2000 it took about 550 B/d to lubricate a change of $US 1 billion of global GDP growth. Higher oil prices from ’02 to ’13 lessened our dependency to 240 B/d through efficiency and substitution. Post the 2014 price crash we’re back up to guzzling 360 B/d for every extra billion dollars of petroleum-fuelled economy.

Gasoline demand is up, because people are driving more kilometers. And 50 million new petroleum vehicles (net of retirements) are hitting the road per year; over 30 million in Asia alone. Petrochemical demand is solidly correlated with economy.

Why are we surprised? When a product gets cheaper people use more.

By Peter Tertzakian for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Naomi on June 22 2017 said:
    Shale methods unlocked a trillion bbl of oil locked in stripper wells. The holes are dug. The pipe to refinery is laid. Bring on the frackers and harvest the loot.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News