Demand for gas in the United States, which represents a tenth of worldwide oil consumption, is expected to peak next year as engines are getting more efficient, Wood Mackenzie experts stated.
Worldwide need for gasoline, which represents more than a quarter of the world’s oil usage, is set to peak as early as 2021 even in the face of unrelenting growth in the automobile fleet, according to the Edinburgh-based consultancy.
An increase in the number of hybrid and electrical vehicles such as the Nissan Leaf, Toyota Prius and Tesla in addition to tighter fuel standards in Europe and the United States will add to a historic shift in consumption.
The United States saw incredible growth in gasoline need following the collapse in oil costs in 2014 and as its economy recovered from the 2008 monetary crisis, reaching a record high of 9.326 million barrels daily in 2016.
Gasoline demand is anticipated to grow to peak of around 9.45 million bpd this year and stay mostly unchanged in 2018 prior to slipping to 9.28 million bpd in the following year, according to WoodMac.
“We expect gasoline engine performance to continue to improve through better release of batteries in hybrid vehicles,” WoodMac analyst Alan Gelder stated.
An expected healing in oil rates in coming years is also expected to cut demand growth, he included.
At its peak, worldwide gas demand is expected to reach 25.89 million barrels per day (bpd) in 2021, representing roughly a quarter of oil demand.
The decrease in U.S. and European fuel consumption will mask a stable growth in demand in Asia, where the majority of the worldwide increase in the vehicle fleet will occur.
While engine effectiveness increase, the international fuel vehicle fleet is anticipated to grow by more than 10 percent by 2025 to above 1 billion automobiles.
Vitol, the world’s leading oil trader, last month stated it anticipated worldwide demand for gasoline and diesel to peak in 2027-2028.
