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Wednesday, January 11, 2023

Demand for Plastics, Petrochemicals Will Keep #Oil Demand Steady As Far As The Eye Can See



American oil demand will rise to near-record levels in 2024 despite a significant drop in gasoline use
, according to the EIA. 


EIA estimates that by 2024, American gasoline demand will drop to 8.73 million barrels per day, or about 600,000 barrels a day lower than it was in 2018But the fall would be more than offset by rising consumption of the feedstock used in the petrochemical industry

to produce plastics, which will hit a record high of about 4 million barrels per day by 2024, up more than 700,000 barrels from 2018.


The US trends are mirrored elsewhere in the world, with plastic consumption soaring in emerging markets like India and China. The EIA anticipates that global oil demand will hit an all-time high of 102.2 million barrels a day in 2024, up 1.7 million barrels a day from 2023 and above the pre-Covid peak set in 2019 of 100.8 million barrels a day. In projecting another year of strong consumption growth, the EIA is further postponing peak oil demand.


If a peak in oil demand is near, it's not showing up in any contemporaneous data or reliable short-term forecast. Only long-term models — rather than forecasts — point to a peak within the next few years. Everything else shows steady-as-it-goes consumption. The 2024 EIA forecast is a case in point: Not only is global oil demand heading toward another record, but the rate of growth isn't moderating. 

See the whole article online here: 



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