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Posted on Nov. 23, 2009

Gasoline Demand Peaked in 2007

From Convenience Store News

Gasoline demand in the U.S., which has been hit hard by the recession, will never return to 2007's peak, BP PLC Chief Executive Tony Hayward said in a report by The Wall Street Journal.

Contributing to his prediction of lessened demand is greater use of biofuels and increased engine efficiency, according to the report.

"We will never sell more gasoline in the U.S. than we sold in 2007," Hayward said in an interview with Dow Jones and The Wall Street Journal.

U.S. Department of Energy (DOE) data show consumption of gasoline fell 3.2 percent in 2008, from a peak average of 9.3 million barrels a day in 2007. A slight uptick from 2008 is expected in 2009, the report stated.

In 2007, BP sold an average of 1.57 million barrels a day of gasoline products worldwide, but 2008 sales fell 4.6 percent, according to the company's annual reports as cited by The Journal.

Hayward's comments echo other industry experts' views. Daniel Yergin of IHS Cambridge Energy Research Associates, who authored "The Prize," a history of the oil business, has said U.S. gasoline demand peaked in 2007. And Chevron Corp. Chief Executive Dave O'Reilly said in a recent earnings call that the company has chosen to focus investment on the Pacific Rim, where economies are expected to grow, according to the report.

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