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According to various sources world crude oil demand grew an average of 1.76% per year from 1994 to 2006, with a high of 3.4% in 2003-2004. World demand for oil is projected to increase 37% over 2006 levels by 2030 (118 million barrels per day (18.8×106 m3/d) from 86 million barrels (13.7×106 m3)), due in large part to increases in demand from the transportation sector. A study published in the journal Energy Policy predicted demand would surpass supply by 2015 (unless constrained by strong recession pressures caused by reduced supply).
Energy demand is distributed amongst four broad sectors: transportation, residential, commercial, and industrial. In terms of oil use, transportation is the largest sector and the one that has seen the largest growth in demand in recent decades. This growth has largely come from new demand for personal-use vehicles powered by internal combustion engines. This sector also has the highest consumption rates, accounting for approximately 68.9% of the oil used in the United States in 2006, and 55% of oil use worldwide as documented in the Hirsch report. Transportation is therefore of particular interest to those seeking to mitigate the effects of peak oil.
Although demand growth is highest in the developing world, the United States is the world's largest consumer of petroleum. Between 1995 and 2005, U.S. consumption grew from 17,700,000 barrels per day (2,810,000 m3/d) to 20,700,000 barrels per day (3,290,000 m3/d), a 3,000,000 barrels per day (480,000 m3/d) increase. China, by comparison, increased consumption from 3,400,000 barrels per day (541,000 m3/d) to 7,000,000 barrels per day (1,100,000 m3/d), an increase of 3,600,000 barrels per day (572,000 m3/d), in the same time frame.
United States oil production peaked in 1970. By 2005 imports were twice the production.
As countries develop, industry and higher living standards drive up energy use, most often of oil. Thriving economies such as China and India are quickly becoming large oil consumers. China has seen oil consumption grow by 8% yearly since 2002, doubling from 1996-2006. In 2008, auto sales in China were expected to grow by as much as 15-20%, resulting in part from economic growth rates of over 10% for 5 years in a row.
The EIA now expects global oil demand to increase by about 1,600,000 barrels per day (254,000 m3/d) in 2010. Asian economies, in particular China, will lead the increase. China’s oil demand may rise more than 5% compared with a 3.7% gain in 2009, the CNPC said.
One 42-gallon barrel of oil creates 19.4 gallons of gasoline. The rest (over half) is used to make several products including diesel, gasoline, naptha and a wide variety of plastics, rubber and other chemicals.