USA: Crude oil consumption expected to remain below pre-pandemic until 2025
A recent report has stated that the next five years earnings won’t offset the decline registered from 2019 to 2020.
The U.S. consumption and production of crude petroleum is expected to remain below pre-pandemic levels through 2025. A recent report released by Freedonia Focus Reports, titled “Crude Petroleum: United States”, has stated that the country is forecast to see 2.2% annual gains in volume terms for the next five years in crude consumption. As the world continues its reactivation, different activities are amping up its demands for fuel day by day. Nonetheless, gains from 2020 to 2025 aren’t expected to compensate for the pandemic-related declines from 2019 to 2020.
On the other hand, fuel efficiency and new energies are other variables that have crippled crude consumption. Ongoing updates in the Corporate Average Fuel Economy (CAFE) standards for vehicles and the accelerating introduction of electric vehicles are expected to continue its constraints on crude demand. Work-from-home and remote work regulations popularized during the pandemic have also impacted on the industry as well as the rise in recycled plastic use.
Regarding its production in the US, the report forecasts it will rise 2.8% annually in volume terms through 2025. The study states that it will benefit from the demand of the world after the Covid-19 pandemic and rising exports caused by global economic growth, especially in countries like China and India. The first signs of this will primarily be reflected in the increasing outputs of crude oil and natural gas plant liquids will be registered as a consequence of shale’s rising production alongside the increasing offshore oil production. However, demands aren’t expected to reach 2019 levels over the forecast period, which will result in a constraint in production growth.
