Diesel sales set to slow after 2015, U.S. report says

Jeanne Riot - 19 November 2014

A new report written by PIRA Energy Group and commissioned by the Fuels Institute published at the end of October analyses US domestic diesel fuel demand, capacity, international demand and trade balances. Input assumptions include GDP growth, population growth, elasticity of demand by sector, efficiency improvements, feedback price effects, and economic competition between fuels. This report forecasts diesel fuel demand in the US to peak in 2015 with 4 million barrels per day, and to slide to 3.5 million barrels per day in 2030. This trend is largely confined to the US market though, the report states, as global demand will still be driven by the industrialization of emerging countries. In the US specifically, increased competition from alternative fuels (electricity and natural gas) and increased fuel efficiency will drive diesel fuel demand lower, according to the report. This is likely to prompt the US to become a diesel exporter.


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