Demand For Oil Increases
The IEA reports that global oil demand has risen. A significant factor is the growing need among Asian nations, particularly India. However, petrochemical demand is ahead of that.
According to the Oil Market Report – February 2025, “Global oil demand growth is projected to average 1.1 mb/d in 2025, up from 870 kb/d in 2024. China will marginally remain the largest source of growth, even as the pace of its expansion is a fraction of recent trends and driven almost entirely by its petrochemical sector.”
Benefits To US Oil Companies
How does this help the US? American oil companies will benefit from the demand, which is one goal of the Trump Administration. However, gas prices will rise if production does not meet the rising demand.
It is easy to see the effect of petrochemical demand. “Twelve percent of global oil demand came from the petrochemical sector in 2018, according to the International Energy Agency. By 2050, it could capture 55 percent of crude oil demand,” according to E&E News.
Renewables Problem
The other factor regarding energy use will likely not change the oil picture soon. Renewables have come online quickly, particularly in China, which remains the world’s largest importer of crude.
Oil demand dynamics are not going to change soon.
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