By the OGJ Online Staff
WASHINGTON, DC, Jan. 16 -- For the first time in a decade, US consumer petroleum product demand declined nearly 1% last year to 19.587 million b/d.
The American Petroleum Institute reported that demand, as measured by deliveries, weakened for most oil products during the year -- except for gasoline, which showed a slight 1.4% rise over 2000.
Comparing December 2001 with the same period a year ago, gasoline deliveries dipped a scant 0.5%, according to API's monthly statistical report.
API said gasoline demand for the year was mostly influenced by retail prices. Despite two price spikes, retail prices ended the year more than 20% lower than at the start because of falling crude prices.
It said causes for the overall drop in products demand were sharply reduced air travel in the aftermath of the Sept. 11 terrorist attacks, the continued lackluster economy, industrial fuel switching from residual fuel oil to cheaper natural gas, weak demand for petrochemical feedstocks, and abnormally warm winter temperatures.
Jet fuel deliveries declined 4.1% compared to 2000 and plunged 15% in the fourth quarter. Jet fuel production declined 5%, the largest annual decline in more than 20 years.
The use of imported crude and refined products was a record 11.6 million b/d in 2001, up 1.2%, but the growth was less than the 5.5% jump between 1999 and 2000.
December's total imports of 10.895 million b/d were 9.6% lower than December 2000, the largest single monthly drop in a decade. In the fourth quarter, the decline averaged 4.2%.
API said despite the declines, total imports are close to 60% of US petroleum consumption. Canada supplies 15% of the petroleum used in the US, followed by about 10% each for Saudi Arabia, Venezuela, and Mexico.
US crude production increased for the first time in a decade and only the second time since 1986. It rose 0.5% to 5.85 million b/d.
API said nearly half the US oil came from Alaskan and offshore fields. Oil production in the Lower 48 states was up 0.4% at almost 4.9 million b/d while Alaska jumped 1% to 980,000 b/d, the first increase there since 1991. Natural gas liquids production was off 2% at 1.870 million b/d.
The association said the refinery utilization rate was 92.3% in 2001, down slightly from the previous year. Yearend crude stocks were 8.6% higher at 310 million bbl.
