Demand Curves Slope Downward
WASHINGTON – U.S. oil demand was significantly down for the first six months of 2008, the API reported Friday in its Monthly Statistical Report. While U.S. refiners churned out record and near-record amounts of oil products, imports – especially product imports -- fell substantially.
Deliveries of all oil products – a measure of demand – fell 3% compared with the same first-half-year period in 2007. For the preceding three years, oil demand had essentially held steady.
API statistics manager Ron Planting said, “At 20.08 million barrels per day, total demand was the lowest in five years. And the decline in gasoline demand was the first significant one recorded in 17 years. Higher pump prices and a slowing economy were undoubtedly factors.”
MP: The three most important solutions to high energy prices: conservation (see above), substitution and innovation.