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By Samuel R. Avro on Dec 17, 2008 with no responses

Report: US Oil Demand to Barely Grow Through 2030

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The Energy Information Administration (EIA) said today that it predicts that U.S. demand for crude oil will rise by only 1 million barrels per day, or 0.2 percent, over the next 20 years. The limited growth in demand is attributed to advancements in renewable fuels and the increased usage of energy efficient vehicles over that time span.

This is the first time in more than 20 years that the agency has predicted virtually no growth.

Though the last twenty years “has been a history of rising oil use,” Howard Gruenspecht, acting head of the agency, part of the U.S. Energy Department, said in a speech today in Washington. The new outlook “projects a break in this trend, with no appreciable growth in oil consumption between now and 2030 and biofuels being all of the growth in liquids.”

Overall hybrid vehicle sales are expected to rise to 38 percent of new light duty vehicle sales in 2030 from 2 percent in 2007, the EIA said.

In addition, plug-in electric hybrid vehicle sales are forceasted to climb to 90,000 vehicles annually and 2 percent of new light vehicle sales by 2030.

The EIA also said in its forecast that natural gas will make up 19 to 22 percent of electricity generation through 2030.

The EIA said earlier this month that global oil consumption would drop by 50,000 barrels this year, the first time it has forecast a decline since 1983.

The sudden climb in oil prices earlier this year, and now the quick drop due to the global financial crisis has cut into demand in the crude oil industry.