November 18, 2013

THE EARTH WILL STILL BE FULL OF OIL WHEN IT CRASHES INTO THE SUN:

The Decline of Oil (John Steele Gordon, 11.18.2013, Commentary)

 Oil consumption has been rising very slowly in the United States, however, up a mere 8.1 percent in 20 years.

But the U.S. population has risen over 20 percent since 1993, so U.S. oil consumption is down significantly on a per capita basis. We used 24.15 barrels a year per person in 1993; today the figure is 21.6 barrels, a 10.6 percent drop per person. The decline in oil consumption on a GDP basis is even more dramatic. In 1993, the U.S. had $1,096 of GDP per barrel of oil consumed. Today the figure is $2,393 per barrel of oil. Taking inflation into account, GDP per barrel of oil is up a whopping 34.8 percent in the last 20 years.

What accounts for that? There are several things. One is a slow but steady switch to other power sources, such as natural gas. In 1993, natural gas produced 13 percent of total U.S. electricity; today it produces 24.7 percent. Oil, meanwhile, went from producing 3.5 percent of total electricity 20 years ago to a mere 0.7 percent today. Another reason is a steadily increasing efficiency. Space heating took 53.1 percent of home energy consumption in 1993; today it is only 41.5 percent. The nation's fleet of cars and trucks have much higher average miles per gallon than 20 years ago. A third reason is that GDP growth in recent decades has been centered in non-energy-intensive industries. Manufacturing automobiles is energy intensive. Manufacturing software is not.

Posted by at November 18, 2013 6:07 PM
  

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