Demand for gasoline lowest in five years

Consumption near its peak?

Steve Hawley, Apr 28, 09.

The demand for gasoline has dropped to the lowest levels since 2004, according to the Houston Business Journal, citing figures from the American Automobile Association (AAA).

The article notes:

The recession has caused worldwide demand for oil and gasoline to remain very soft, according to the International Energy Agency. The U.S. Department of Energy estimates that total average daily fuel demand this spring is down more than 5 percent compared to last year, AAA says.

The numbers are consistent with several other reports. The Federal Highway Administration noted that US driving miles dropped precipitously in 2008, decreasing for only the fourth time since World War II. Before February, daily driving had decreased for 15 straight months. And Exxon’s head of energy forecasting recently said, “We are probably at or very near a peak in terms of light-duty gasoline demand.” Exxon expects US fuel demand to drop by 22 percent over the next two decades.

(Photo credit: rkimpeljr)