Global oil consumption on a rise year-on-year
The global oil consumption will rise by about 60% by 2020 said Institute for Analysis of Global Security. Transportation will be the fastest growing oil consuming sector in the world. It is estimated that by 2025 the number of cars will increase to over 1.25 billion and the global consumption of gasoline could double. The Organisation of Petroleum Exporting Countries (OPEC) says that stable US economy and the shut down of nuclear plants in Japan boosted up demand. At the beginning of the 20th century oil supplied only 4% of the world's energy but decades later it became the most important energy source.
Today oil supplies about 40% of the world's energy and 96% of its transportation energy. Oil consumption is mainly distributed among four sections transportation resedential 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. World oil demand growth in 2012 is expected at 0.9 mb/d.
Since the shift from coal to oil the world has consumed over 875 billion barrels. China and India whose combined populations account for a third of humanity has the highest rate of growth in oil use in the world. As the demand for oil is on peak year after year the price of oil is also hiking up. The shut down of Japan s nuclear plants is leading to more fuel and crude oil usage in the power sector. The U.S. Energy Information Administration forecasts that the market would tighten as gains in non OPEC production lag.
The first half of this year experienced various economic developments world wide which placed a great amount of uncertainty on oil demand. The second half of the year is likely to experience an even greater degree of uncertainty. The EIA said the cost of crude will average about $100 per barrel in 2012 up $5 a barrel from the average price last year. World petroleum consumption is projected to climb 1.47 million bpd next year to 90.85 million bpd. Crude oil prices are expected to rise to an average of $103.75 a barrel by 2013 which would affect the economy of high oil consuming nations in a bad manner.