The rise and fall of production and consumption

Global petroleum and other liquid consumption and production

in thousands of barrels per day

Looking at these charts, a few trends emerge.

First, American consumption of oil has decreased. This is partly because of a decline in demand due to high oil prices, but also because the U.S. has become more energy efficient. Newer cars, and new kinds of cars like hybrids, get more miles to the gallon, among other efficiencies. The drop in oil consumption, especially when combined with growing U.S. domestic production, also has raised important foreign policy questions, like whether the U.S. will stop needing oil from OPEC countries.

Second, the spike in oil consumption in Asia is a significant trend caused mostly by the steady increase of populations in places like India, China and Indonesia. Asia’s steady increase in oil production, while far from Middle East levels, has the potential to create new and strong Asian markets.

The same climb in oil demand is true for the Middle East. Oil-rich nations like Saudi Arabia, whose population is also increasing, may need to cut down on exports to serve domestic demand.

Yet Middle East oil continues to dominate the world’s oil production, despite increases in Asian and U.S. production.