For U.S. companies, it was the equivalent of 18% of proven reserves. Despite having the smallest population of the three, the United States has the highest consumption. Thank you for subscribing. This is followed by China, which consumes 11.75 million barrels of oil per day, accounting for about 12% of total consumption, and India, which consumes about 4.49 million barrels per day, accounting for about 4.6% of consumption. A progressive recovery takes place through the second half of 2020. Refiners, nevertheless, continue to build much more capacity than what is needed to meet product demand. At the same time, global energy transitions are affecting the oil industry: companies must balance the investments needed to ensure sufficient supplies against the necessity of cutting emissions. To construct a base case for oil demand in 2020, this report draws on a wide range of data sources, including initial data for transport fuel demand, the most affected sector, and recently revised global GDP estimates by the Organisation for Economic Co-operation and Development (OECD). Demand growth for gasoline and diesel between 2019 and 2025 is set to weaken as countries around the world implement policies to improve efficiency and cut carbon dioxide (CO2) emissions, and as electric vehicles increase in popularity. This year, the report considers topics such as the impact of the new coronavirus (COVID-19) on demand; slowing supply growth in the United States and other non-OPEC countries; and the level of spare production capacity in OPEC countries to help meet demand growth. In this base case, we assume that although the virus is brought under control in China by the end of the first quarter, the number of cases rises in many other countries. EIA forecasts OPEC crude oil production will average 27.5 million barrels per day (b/d) in 2021, up from an estimated 25.6 million b/d in 2020. Heavier oil products are used to make asphalt and lubricating oils such as petroleum. In the first half of 2020, when oil demand suddenly vanished in the pandemic, the industry wrote down a fresh $170 billion. Alaska, Texas, North Dakota, New Mexico, and Oklahoma are the largest oil-producing states in the U.S. Colombia, the UK, Russia, Egypt, Nigeria and Angola post the biggest declines. Brazil, Guyana, Iraq and the United Arab Emirates also deliver impressive gains. To date, announcements by major oil companies on reducing their CO2 emissions have tended to focus on long‑term objectives. In 2018, the world used approximately 99.3 million barrels of oil per day. All three of these countries have the three largest populations in the world. You can unsubscribe at any time by clicking the link at the bottom of any IEA newsletter. In this context, governments do not need to take strong containment measures and use of transport remains closer to normal. Crude oil is extracted and undergoes distillation to break down the liquid into various products. Global attention is increasingly focused on the need to accelerate clean energy transitions in order to mitigate the risks of climate change. In 2019 the US Gulf Coast became the largest seaborne crude oil export hub outside the Middle East, supplying 2.6 mb/d to world markets. Strong growth in Asian oil demand is creating major opportunities for oil producing countries that can boost exports. Some of the smallest consumers of crude oil are Niue at 60 barrels per day, Saint Helena at 80 barrels per day, the Falkland Islands at 300 barrels per day, and Nauru and Kiribati, which both consume about 400 barrels per day. The United States is both the largest producer of oil and the largest consumer. Due to its fast ramp-up and rapid decline, US light tight oil (LTO) production is more responsive to a change in the oil price than conventional sources of supply. Global oil demand is expected to continue to decline in 2020 as a result of the COVID-19 … Given its huge resource potential, it could produce even more if prices end up higher than assumed in this report. As a consequence, Asian oil import requirements in 2025 surpass 31 mb/d. Oil reserves denote the amount of crude oil located in a particular region that can be recovered using current technological constraints and at a cost that is feasible at the current oil prices. Global oil supply fell in September as OPEC+ countries improved the compliance rate with their agreement. With its major emissions footprint, the energy sector – including the oil and gas industry – is at the heart of the matter. Improved efficiency standards and increased penetration of electric vehicles sees demand growth stall. In our base case, that assumes $60/bbl Brent, growth is expected to grind to a halt in the early 2020s and production will plateau around 20 mb/d – 2.5 mb/d higher than in 2019. Petrochemical feedstocks LPG/ethane and naphtha will drive around half of all oil products demand growth, helped by continued rising plastics demand and cheap natural gas liquids in North America. The world’s proven reserves are equivalent to about 46.6 times its annual consumption levels, meaning that the Earth has about 47 years of oil left at the current consumption levels. Due to the coronavirus outbreak weighing on economic growth, OPEC now sees global oil demand rising by mere 60,000 bpd in 2020 after it has slashed … In 2018, the United States became the largest producer of crude oil, surpassing both Russia and Saudi Arabia, producing about 12.1 million barrels per day. OPEC downwardly revised its outlook for global oil demand growth to 0.99 million barrels per day (bpd) in 2020. The world’s oil production capacity is expected to rise by 5.9 mb/d by 2025, which more than covers growth in demand. Between 2019 and 2025, global oil demand is forecast to grow at an average annual rate of just below 1 mb/d. Crude oil produces many beneficial products that have improved the quality of life for people around the world. Oil imports will be coming from places further away, increasing voyage duration and inherently limiting flexibility when dealing with emergencies. Looking beyond the short term, the oil market looks comfortably supplied through 2025. Following a record increase of more than 2.2 mb/d in 2018, the pace of the US expansion slowed to 1.6 mb/d last year as independent producers cut spending and scaled back drilling activity. Refining capacity additions in recent years have outstripped demand growth, bringing tough competition for an industry already challenged by tightening product specifications, most notably the new International Maritime Organisation (IMO) bunker rules introduced at the beginning of 2020. In its monthly report, OPEC pegged 2020 oil demand at 89.99 million barrels a day, a decline of 9.77 million barrels a day from 2019 and slightly below its previous estimate. However, demand from the aviation sector will continue to suffer from the contraction in global air travel. The outbreak of the new coronavirus (COVID-19) has added a major layer of uncertainty to the oil market outlook at the start of the forecast period covered by this report. The situation remains very fluid, however, making it extremely difficult to assess the full impact of the virus. Crude oil is the main source of energy globally. Total non-OPEC oil supply rises by 4.5 mb/d to reach 69.5 mb/d by 2025. As for OPEC, even though sanctions and economic distress have wiped out 2.5 mb/d of production from Iran and Venezuela since 2017, effective crude oil capacity rises by 1.2 mb/d to 34.1 mb/d. The impacts vary by fuel. The oil market will suffer a long-lasting blow from the coronavirus, with demand taking years to recover and peaking at a lower level, the International Energy Agency said. During the medium-term, the US Gulf Coast will solidify its position as the largest seaborne export hub outside the Middle East, adding another 2 mb/d to seaborne crude oil exports. From 2022, the US loses steam allowing OPEC producers from the Middle East to turn up the taps to help keep the oil market in balance. Ultimately, the outlook for the oil market will depend on how quickly governments move to contain the coronavirus outbreak, how successful their efforts are, and what lingering impact the global health crisis has on economic activity. There is an estimated 1.65 trillion barrels of proven oil reserves in the world as of 2016. Gains in supply are heavily front-loaded, however, and robust non-OPEC growth through 2021 suggests that there is likely to be a role for OPEC+ market management during the first part of the period. This is about 20% of the world’s total oil consumption. As a result, world oil demand is now expected to contract by around 9.8 million barrels per day in 2020, compared to last year. Global oil demand is rebounding after hitting a trough last month as ongoing strong consumption in Asia and Latin America, coupled with a recovery in … Through 2025, global oil demand rises by a total of 5.7 mb/d, with China and India accounting for about half of growth. The EIA estimates global oil and liquid fuels demand will be 92.4 million barrels per day (b/d) in 2020. Oil demand growth slows because demand for diesel and gasoline nears a plateau as new efficiency standards are applied to internal combustion engine vehicles and electric vehicles hit the market. Reduced jet and kerosene deliveries will impact total oil demand until at least 2022. As US growth plateaus, Middle East producers step up to supply the required incremental barrels. Based on the above, global oil demand will be back to pre-pandemic levels by the end of 2021 if not slightly earlier. Recent price volatility could have a major impact on US production. In 2020, global oil demand is expected to contract for the first time since the global recession of 2009. The prediction, which sees oil demand … The deceleration in US and other non-OPEC growth from 2022 will allow OPEC producers from the Middle East to turn up the taps to help keep the oil market in balance, thereby increasing their importance for oil consuming countries. Other non-OPEC producers, Brazil, Guyana, Canada, increase exports too. It is estimated that the world consumes over 97 million barrels of oil per day. Global oil supply looks comfortable through the forecast period. In this case, oil demand in China suffers the most in the first quarter, with a year-on-year fall of 1.8 million barrels per day (mb/d). Current oversupply and the impact of COVID-19 on demand should not be a reason for complacency when it comes to security of supply. Here are the 10 countries with the highest oil consumption: The World Factbook Refined Petroleum Products - Consumption. In this case, global oil demand could grow by 480,000 barrels per day in 2020. The estimated falls of 8% in oil demand and 7% in coal use stand in sharp contrast to a slight rise in the contribution of renewables. Oil remains the lifeblood of any war effort today and drives many components of the modern military complex including aircraft, vehicles, warships, small arms, and general industry. “Our OPEC outlook for 2020 oil demand is now slightly above 90 million bpd. All major Asian economies are heavily dependent on oil imports. The International Energy Agency expects crude oil demand this year to be 8.1 million bpd lower than it was in 2019. This is a sharp reduction on the 1.5 mb/d annual pace seen in the past 10-year period. This assumes that there is no change to sanctions on Iran or Venezuela. The majority of crude oil produces gasoline, diesel, jet fuel, and heating oils. Bans imposed on single-use plastics and recycling, even if fully implemented, will displace only a very modest amount of oil demand. Against a background of collapsing global oil demand, OPEC+ producers met on 6 March to review the market situation. Oil advances on U.S. inventory draw, but demand fears weigh Published Tue, Dec 29 2020 11:09 PM EST Updated Wed, Dec 30 2020 3:25 PM EST An aerial drone view of a crude oil … Global oil demand rebounds in 2021 and Asia accounts for 77% of oil demand growth through 2025. Brazil’s surge in oil demand is a welcome development for a global market that’s been forced to push back expectations for when energy demand might get back to pre-virus levels. It expects demand to increase by 5.8 million b/d in 2021. Crude oil is a mineral consisting of a mixture of hydrocarbons of natural origin, ranging from yellow to black, and of variable density and viscosity. The Organization of the Petroleum Exporting Countries (OPEC) has revised its 2020 and 2021 outlook for oil demand. Production losses from Iran, Libya and Venezuela have reached a combined 3.5 mb/d since the start of 2018. Rystad Energy is forecasting that oil demand will decrease 10.9 percent, or 10.8 million barrels per day (MMbpd), year over year in 2020. While ensuring it is able to continue to meet growing demand, it must also address the need to curb emissions and improve sustainability. With uncertainties over demand, supply, investment strategies and business models, the global oil industry faces major challenges. Petrochemicals become an ever more important driver, with naphtha, liquefied petroleum gas (LPG) and ethane responsible for half of all growth. IEA (2020), Oil 2020, IEA, Paris https://www.iea.org/reports/oil-2020. Oil rises on hopes of demand picking up 30 December 2020 - 07:48 Naveen Thukral A liquefied natural gas tanker at a port of the China National Offshore Oil Corporation in Tianjin, China. Oil Consumption by Country (2020) Examination of the oil consumption commitment of countries. The top ten consumers of oil account for 60% of the world’s total oil consumption. Global oil supply fell by 2.4 million bpd in June to a 9-year low of 86.9 million bpd. Oil demand for 2020 seen as 92.1 million barrels per day (bpd), up 400,000 bpd from last month. In the second quarter, an improving situation in China offsets deteriorating demand elsewhere. Find out about the world, a region, or a country, Find out about a fuel, a technology or a sector, Explore the full range of IEA's unique analysis, Search, download and purchase energy data and statistics, Search, filter and find energy-related policies, Shaping a secure and sustainable energy future, Clean Energy Transitions in Emerging Economies, Digital Demand-Driven Electricity Networks Initiative, Global Commission for Urgent Action on Energy Efficiency, Promoting digital demand-driven electricity networks. In addition, the lack of demand for oil resulted in cargoes being stuck at destination ports, … These nations have notably smaller populations and fewer vehicles and planes that require larger amounts of crude oil. Oil 2020 examines the key issues in demand, supply, refining and trade to 2025. The United States consumes about 19.69 million barrels of oil per day, which is more than the entire European Union. The projection, contained in OPEC's closely watched monthly oil market report, follows the International Energy Agency's analysis released Monday that forecast a contraction in global demand for 2020 of 90,000 b/d -- which would be the first shrinkage in consumption since the financial crisis in 2009. Nevertheless, investors continue to ratchet up pressure on the industry to sharpen its focus on sustainability issues while activists, especially in Europe and North America, seek to hinder new oil developments. The pace of expansion in the United States is slowing as independent producers cut spending and scale back drilling activity in response to pressure from investors. Venezuela currently has the largest oil reserves in the world. Brazil, Guyana, Iraq and the UAE also deliver impressive gains. For 2020 as a whole, the magnitude of the drop in the first half leads to a decline in global oil demand of around 90,000 barrels a day compared with 2019. Following a contraction in 2020 and an expected sharp rebound in 2021, global oil demand growth is set to weaken as consumption of transport fuels increases more slowly. Following a difficult start in 2020 (-90 kb/d) due to the coronavirus, growth rebounds to 2.1 mb/d in 2021 and decelerates to 800 kb/d by 2025 as transport fuels demand growth stagnates. Our assessment is that global energy demand is set to drop by 5% in 2020, energy-related CO 2 emissions by 7%, and energy investment by 18%. Efforts to improve the sustainability of the plastics industry will run up against the steady increase in demand from consumers in developing countries. For 2020 as a whole, the magnitude of the drop in the first half leads to a decline in global oil demand of around 90,000 barrels a day compared with 2019. These alternatives are outlined in the March edition of the IEA’s monthly Oil Market Report, which is released in tandem with this medium-term report. The International Energy Agency said in an outlook Thursday it expects global oil demand to decline by 8.6 million barrels a day for 2020, a drop fueled by the coronavirus crisis. That's down by 0.23 million bpd from the previous month's estimate. Oil 2020 looks at the interplay between the expanding US influence in global oil supply and the demand from Asia for exports from the Middle East. A price of $40/bbl would cause LTO output to decline from 2021, and fall by 1.1 mb/d to 2025, compared with growth of 2.2 mb/d in our base case. 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