Yesterday the U.S. Senate Committee on Energy and Natural Resources held a hearing titled “The Geopoltics and Oil.” Now it could be a sign of the top of the oil price when Congress starts to hold hearings. Or it could mean the government is gearing up to become more involved in America’s domestic energy industry (more involved, even, than a war). Either way, we were especially interested in a chart that accompanied the testimony of Dr. Faith Birol, the Chief Economist for the International Energy Agency.
The chart, which you can see below, shows that the chief demand for oil is, as we pointed out earlier in the week, transportation fuels and not seasonal heating oil in America’s North East. Here is what Dr. Birol said:
The transport sector absorbs 63% of the increase in global oil demand in 2004-2030. In the OECD, oil use in other sectors hardly increases at all, declining in power generation and in the residential and services sectors, and growing in industry. Most of the increase in energy demand in non-transport sectors is met by gas, coal, renewables and electricity. In non-OECD countries, too, transport is the biggest contributor to oil-demand growth; but other sectors – notably industry – also see significant growth.