U.S. Department of Energy - Energy Efficiency and Renewable Energy
Federal Energy Management Program
U.S. Petroleum Demand Decreased in 2006, Says API
January 24, 2007
The American Petroleum Institute (API) announced last week that total
petroleum deliveries in the United States decreased by 1.1 percent in
2006. Jet fuel deliveries dropped by 2.8 percent as airlines continued
to economize on fuel, and residual fuel oil deliveries dropped by
27 percent as electric utilities replaced that fuel with natural gas.
The year's largest increase in deliveries was for distillate fuel oil,
which includes both highway diesel fuel and heating oil. API credits
an increase in highway diesel fuel consumption for an overall increase
of 1.3 percent for deliveries of distillate fuel oil. The institute
notes that ultra-low sulfur diesel (ULSD) came into widespread
production in mid-year and accounted for most of the fuel used by on-highway diesel trucks by the end of the year. That conclusion was
confirmed by the U.S. Environmental Protection Agency (EPA) in early
December, when the agency noted that about 85 percent of the highway
diesel fuel sold at retail stations now meets the ULSD standard. See
the EPA press release.
Gasoline deliveries increased only 0.8 percent, which led API to
declare that the increase in gasoline deliveries was, in effect, "met
entirely by a substantial jump in the blending of ethanol into
gasoline." API estimates ethanol use in gasoline at 5.4 billion
gallons in 2004, noting that more than 40 percent of all gasoline sold
in the United States now includes ethanol. See the API's Monthly
Statistical Report summary (PDF 21 KB).
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