The People of America's Oil and Natural Gas Indusry

Peak Oil Demand

Jane Van Ryan

Jane Van Ryan
Posted February 5, 2010

News flash: Global oil demand is expected to peak between 95 and 110 million barrels a day, according to BP's CEO Tony Hayward. As reported by Reuters yesterday, Hayward expects oil demand will begin to decline probably after 2020. Today the world consumes about 85 million barrels of oil a day.

"World demand will peak before its supply peaks because there is plenty of oil in the world, there really is," Hayward said in a BBC radio interview.

Hayward added that the demand for gasoline experienced in the United States and Europe in 2007 isn't likely to be surpassed. His comments are consistent with projections from the U.S. Department of Energy (DOE), which also has stated that 2007 was the peak year for U.S. gasoline demand.

A published report in the Kansas City Star attributes the long-term decline in gasoline consumption to:

  • New standards for cars and light trucks which will make U.S. vehicles more efficient;
  • A leveling-off in the number of U.S. vehicles; and
  • The growth in alternative fuel consumption.

For more information, read the Kansas City Star's article on peak oil demand.