Adam Levine-Weinberg on why the U.S. is using less oil every year.
A sharp uptick in oil prices caused demand growth to stagnate after 2004. The Great Recession then led to a steep drop in demand as people found ways to make do with less oil. In 2010, oil consumption looked like it might rebound, but since then, it has started to decline again. This is likely the beginning of a long-term trend.
Reasons for the continued drop:
- Abundance of natural gas
- Drop in home heating oil
- Fuel efficient vehicles