We Still Need the Energy

By January 15, 2009Energy

A news release from the American Petroleum Industry, “U.S. petroleum demand shrinks to lowest level since 2003 – API

WASHINGTON – Total U.S. petroleum demand shrank to its lowest levels since 2003 due to the combined effects of higher prices early in the year and a weakening economy as the year progressed, according to API’s Monthly Statistical Report, which reflects data from December as well as full-year 2008.

For the year, U.S. petroleum deliveries, a measure for demand, fell 6 percent – the most rapid rate decline since 1980 – to 19.4 million barrels per day, with declines observed for all major products. Gasoline deliveries dropped 3.3 percent to their lowest levels in five years. Deliveries of distillate fuel oil, which includes diesel fuel, fell 5.8 percent, while jet fuel deliveries slid 6.1 percent. Residual fuel oil deliveries dropped more than 14 percent.

“All told, the magnitude of the drop in U.S. petroleum demand, which totaled more than 1.2 million barrels per day, was enough to offset the continued demand gains in developing countries around the world,” said API statistics manager Ron Planting.

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