U.S. Gasoline Consumption May Have Peaked in 2007, Analysts Say

Improved fuel efficiency, increasing use of biofuels, and an expected jump in sales of hybrid and electric vehicles probably mean that gasoline consumption in the U.S. peaked in 2007 and could shrink by at least 20 percent over the next two decades, according to The Wall Street Journal. Americans burned 371 million gallons of petroleum-based gasoline every day in 2007, a number that is expected to decline 7 percent to 346 million gallons per day this year. Analysts and oil company executives say that part of the falling demand is due to the recession, but said a growing concern about greenhouse gas emissions likely will mean significant improvements in fuel efficiency, as well as greater adoption of hybrid and electric vehicles. These trends have led Exxon Mobil Corp. to forecast a 22 percent drop in fuel demand between now and 2030. “We are probably at or very near peak in terms of light-duty gasoline demand,” said Scott Nauman, head of Exxon’s energy forecasting. The drop in gasoline sales means a loss of gas tax revenue for state and federal governments and a scaling-back of production at oil refineries, the Journal reported.