More Demand, Less Supply
Between 1975 and 2000, oil consumption for transportation rose in the U.S. by 43%. 2 Most energy supply experts expect oil supplies to peak within the next 30 years. 2 With just 5% of the world’s population, the U.S. represents 25% of the world’s oil consumption, averaging more than 20 million barrels of the world’s total 80 million a day. 2 This imbalanced reliance on petroleum comes at a heavy cost.

The True Cost of Oil
Soaring demand, fueled by increasing numbers of cars and trucks, also causes prices to soar. The price of oil is the highest it’s been since the 1991 Persian Gulf War. U.S. gasoline demand has outstripped domestic refinery capacity. Should a sudden supply disruption occur, suppliers will not be able to respond quickly to meet the current high demand. This potential scenario has prompted traders and speculators to bid up oil prices on the spot market — at a profit to the oil industry and a price at the pump.

Competing for Oil Resources
The world surplus capacity in 2004 fell to its second lowest level in three decades. The lower supply and higher demand increases U.S. dependence on Middle East oil — two-thirds of the world’s oil reserves (compared to the U.S.’s 2%).

The U.S. has serious competition for foreign oil resources, as well. Demand in other countries, particularly China and India, is growing even faster than U.S. demand. World oil consumption is expected to increase 50% by 2025, an increase driven largely by developing Asian countries. China’s demand is growing 10% per year, with foreign oil imports rising more than 30% in 2003 alone. With more than quadruple U.S.’s population, China adds tremendous pressure to the global petroleum market. 1

Can alternative fuels resolve these supply issues by meeting the tremendous demands of U.S. transportation domestically? Read more about how fueling solutions are addressing this challenge.

1. National Resources Defense Council, Reducing America’s Energy Dependence
2. INFORM Reports, Fall/Winter 2004, Vol 24, No. 3

top