US Gasoline Demand in 2017
Gasoline prices all over the world often fluctuate; These depend on multiple factors. Some factors include consumption by the consumers, the rate of hybrid or fuel efficient car productions and their usage, rate of gasoline distillation and the amount of resources available worldwide. Although the estimates of gasoline production and usage can be predicted in general, these trends depend on other factors.
US gasoline demand has varied greatly in the last two decades. The gasoline consumption of the US was seen at its peak in 2016 after a long time period since 2007. The last major gasoline consumption record was set in 2007 at approximately 10,000 barrels of gasoline per day. Although the consumption of gasoline in 2016 couldn’t break this record, it almost touched this mark. The consumption of gasoline in terms of barrel per day in 2017 is expected to remain below the record high of 2007. This consumption is expected to remain the same in 2018. However, it is expected to decrease afterwards.
Since the Gasoline consumption is estimated to increase to 9000 barrels per day in the current year, the refineries in Gulf States are looking forward to help US meet its need by sending gasoline all the way to Latin America. Gulf States have a lot of gasoline in their reservoirs and they are looking forward to earn some money through it. Gulf States plan to export their Gasoline to Africa, too, to get rid of the excess amount of Gasoline.
The slight constant behavior and the decrease afterwards in gasoline consumption is justified by the production of fuel efficient vehicles, electric cars and the increasing prices of gasoline. People of United States covered a distance of 3.22 trillion miles last year just because of the lower prices of gasoline. gasoline consumption after 2017 is estimated to decrease with the increase in the prices and better performing vehicles. People will start preferring fuel efficient or electric cars over normal vehicles. Considering this change in the climate of gasoline industry, US will be producing more gasoline as compared to its consumption. This increase in production is expected to be 9% by 2018.
While some analysts consider the fact that US would be producing more gasoline as compared to its consumption to be a negative sign, others think the opposite. According to this opposing side of analysts, the excess amount of gasoline will always stay in favor of the US considering the increasing consumption in Latin America. The US also exports all excess gasoline being produces. In fact, US saw an average of more than 29000 barrels of gasoline exports by December of last year. This accounts for an increase of nearly 60% as compared to last year.