• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 5 hours U.S. Shale Oil Debt: Deep the Denial
  • 6 hours Satellite Moons to Replace Streetlamps?!
  • 2 days EU to Splash Billions on Battery Factories
  • 22 hours The Dirt on Clean Electric Cars
  • 9 hours Why I Think Natural Gas is the Logical Future of Energy
  • 6 hours Can “Renewables” Dent the World’s need for Electricity?
  • 26 mins Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 19 hours Owning stocks long-term low risk?
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 3 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 2 days The end of "King Coal" in the Wales
  • 8 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
Forget Lithium, This Is The Next Big Thing In Energy

Forget Lithium, This Is The Next Big Thing In Energy

There’s a virtually unknown commodity…

What’s Behind The Drop In Asian LNG Prices?

What’s Behind The Drop In Asian LNG Prices?

Asian LNG prices tanked on…

Oil Dependency Climbs As Supply Rises And Prices Fall

Gas Pumps

(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:


x

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