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Page added on January 19, 2013
U.S. 2012 Oil Demand Down 2% vs 2011
The U.S. was plagued by persistently weak demand for refined petroleum products last year, while domestic crude oil production rose at a record rate.
New drilling techniques, which unlock crude from shale rock formations, continue to expand and providing a growing source of crude that was not even contemplated only years ago. However, sputtering economic expansion has kept a lid on oil use in 2012.
The U.S. appetite for petroleum products, which use crude as their principal feedstock, tumbled to its lowest annual level in 16 years, according to a study released by the trade group American Petroleum Institute. Consumption fell 2% in 2012 to an average of 18.566 million barrels a day last year.
“Demand was worse in 2012 than when the economy bottomed out in the [2008] recession,” API chief economist John Felmy said of the consumer caution during the current uncertain economic landscape.
Meanwhile, U.S. crude oil output jumped 13.8% to a 15-year high of 6.431 million barrels a day, the study said. Domestic production was up nearly 800,000 barrels a day, representing the largest annual increase in U.S. output since the beginning of commercial oil output in the nation in 1859.
Last year was “a story of contrasts. U.S. product demand weakened across the board, while domestic production of crude oil surged,” Mr. Felmy said.
The trend also was reflected in last month’s numbers: demand fell 2.1% in December, while output rose 15.6%.
The abundant U.S. production last year also slashed the need for imports of crude and petroleum products, which were down 6.9% to 10.517 million barrels a days, the lowest level since 1997, API said.
Refinery crude oil processing inched up by 0.3% in 2012 to an eight-year high of 15.342 million barrels a day. December crude oil runs were up 2.9% from a year earlier, at 15.783 million barrels a day.
Meanwhile, demand for major petroleum products such as gasoline, diesel fuel and heating oil declined year-on-year.
Gasoline, the most widely used petroleum product, registered a 0.4% drop for the full year, to 8.718 million barrels a day. December gasoline use slid 1.1% from the same time in 2011, to 8.683 million barrels a day.
Demand for distillate fuel, the umbrella grouping for diesel and heating oil, fell 4% for the full year and was down 7% year-on-year in December. Within the distillate figure, demand for ultra-low sulfur diesel fuel used by trucks and trains, fell 1.4% for the full year and dropped 3.2% in December from a year earlier.
Jet fuel use fell 1.7% in 2012 from 2011, but demand rose in December by 2.7% from a year earlier. Residual fuel, which is used in industrial boilers and power generation, but has been steadily losing ground to natural gas, fell 22.1% in 2012, to 359,000 barrels a day, the lowest level on record, API said.
Crude oil stocks ended 2012 at 359.8 million barrels, a 31-year high, and an 8.7% rise from a year earlier. Gasoline stocks were 0.2% higher year-on-year, at 223.7 million barrels, after rising 8.1% from the end of November.
9 Comments on "U.S. 2012 Oil Demand Down 2% vs 2011"
BillT on Sat, 19th Jan 2013 1:22 pm
There can be an ocean of oil, but if the consumer has no money to buy it …
Cloud9 on Sat, 19th Jan 2013 2:08 pm
At the right price we will produce hydrocarbons from people. Meanwhile, demand destruction continues unabated. We can see where it is going. Look at Greece. Look at Oakland. Look at Detroit. Look to yourselves because our central planners are members of a cargo cult.
Kenz300 on Sat, 19th Jan 2013 4:05 pm
Oil production is slowly inching higher.
Energy efficiency is slowly increasing.
People are trading in those 12 MPG gas guzzlers for vehicles getting as much as 40 MPG. Electrics, hybrids and CNG and LNG vehicles are becoming a bigger part of the transportation fleet.
Biofuels now make up nearly 10% of the fuel supply.
Net oil imports have dropped from over 60 % to 40% and are still dropping.
The US is slowly reducing its dependence on imported oil and is increasing its energy efficiency.
That is a good thing.
Mike999 on Sat, 19th Jan 2013 5:33 pm
It’s not fast enough.
If there are no crops from US drought, then there’s nothing to ship.
GregT on Sat, 19th Jan 2013 5:44 pm
“sputtering economic expansion has kept a lid on oil use in 2012.”
“Demand was worse in 2012 than when the economy bottomed out in the [2008] recession,” API chief economist John Felmy said of the consumer caution during the current uncertain economic landscape.”
The US economy is in serious trouble, even as demand destruction continues, oil prices are still rising.
BillT on Sun, 20th Jan 2013 5:50 am
Kenz is still dreaming…and GregT is in the real world. We have only begun the Greatest Great Depression. Oil prices will NOT fall until the world is totally screwed. Then there will no ‘demand’ and therefore, no sales anywhere. Can’t happen? Do you want to bet YOUR life on that? You are, if you are not preparing for an ‘oiless’ lifestyle.
Rusty Baker on Sun, 20th Jan 2013 8:13 am
Are GregT and BillT related?
DC on Sun, 20th Jan 2013 8:40 am
Still cant haven’t given up on the idea that ‘hybrids’ are going to save….just what are they supposed to be saving there Ken?
Wall-mart?
Suburbia?
Endless commuting?
More fuel freed-up for the US global war-machine?
40MPG gas-burners are just as incompatible with a better world as 30MPG are, or 60 MPG. Take your pick…..really. Those 40MPG trash-bins you are so sure are going to save the world, will do nothing of the sort. In fact, they extend the status-quo, and I am pretty sure you must know that by now.
Demand destruction is reducing US ‘dependency’, and I agree with you-that IS a good thing.
Efficiency however, is not taking hold in the United States of Dirty Energy. Less energy per capita used in the US of Coal means only thing. Again, demand destruction. A good thing to be sure.
BillT on Sun, 20th Jan 2013 11:52 am
Rusty, not that I know of, but brilliant minds think alike. ^_^ Seriously, maybe we are just two people tuned to reality and share the same picture of the future. You don’t know how much I would like that we could go on as before, always improving and having a real future for my kids and grand kids. But, I do not see that happening. Not even close.
The more I watch what is happening, the more I doubt that anyone has a future much beyond mid-century. Climate change is more important than anything and it is still being ignored. I doubt we will ignore it for much longer. We shall see.