Tags: exxon | gas | consumption

Exxon CEO: U.S. Gas Consumption Peaked

By Julie Crawshaw   |   Thursday, 08 Oct 2009 01:55 PM

U.S. gasoline consumption passed its peak of 20 million barrels per day in 2007, according to Exxon CEO Rex Tillerson.

Biofuels and development of electric cars are lowering U.S. drivers' gas guzzling, says Tillerson, who expects a downtrend in oil product demand towards 17 million barrels a day by 2020.

"We think going forward that because of the emphasis on energy efficiency, ongoing improvements in vehicle miles standards and hybrid (cars), that motor vehicle gasoline demand is down, is headed down, and is going to continue to head down," Tillerson told Reuters.

Bad news for those planning new refineries, good news for those invested in existing refining facilities, where a lot of income can still be squeezed from what will probably continue to be massive U.S. demand.

Moreover, high construction costs and a dead long-term growth story will hinder new refineries anyway.

Oil demand is rising, though, in other parts of the world.

“Emerging markets have definitely been driving the demand recovery,” Thina Saltveldt, an analyst at Nordea Bank AB in Oslo told Bloomberg.

“Industrial production has increased. We will see a gradual improvement in the economy, but prices have got ahead of the physical fundamentals.”

Chinese manufacturing rose for a sixth month in September, and Japanese industrial output climbed for a sixth time in August.

Oil is heading for its first quarterly decline this year as U.S. inventories swell.

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U.S. gasoline consumption passed its peak of 20 million barrels per day in 2007, according to Exxon CEO Rex Tillerson.Biofuels and development of electric cars are lowering U.S. drivers' gas guzzling, says Tillerson, who expects a downtrend in oil product demand towards 17...
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