Petroleum supplied less than 40% of U.S. energy demand in 1995, the lowest level in decades, the American Petroleum Institute reports.
Energy supplied by petroleum has varied between 32 quadrillion and 35 quadrillion BTU (quads)/year during the last decade while energy consumed has risen to 87.6 quads/year from 74.3.
U.S. energy consumption rose 2.3% to 87.6 quads in 1995, but natural gas and nuclear power supplied most of the increase while petroleum's share was flat. Together, oil and gas supplied about 65% of energy consumed, where it has been for the past decade.
U.S. oil production dropped 2.2% in 1995 to an average 6.517 million, the lowest level since 1954. Production was firm in the first half of the year but dropped sharply in the second.
While the year's percentage decline in crude production was an improvement from the 3.5% average decline in the 3 prior years, by the end of last year the decline rate had increased to 3.8%.
Edward Murphy, API director of finance, accounting, and statistics, said, "Statistics on completions last year, which show a 9.3% decrease in the number of wells drilled, provide little basis for optimism that this trend will improve."
Demand, inventories
API figures show flat demand and inventory drawdowns forced imports of crude and products 1.3% lower in 1995 to 8.867 million b/d, the first drop in 4 years. That put U.S. dependence on petroleum imports at 51%, down 1 percentage point from 1994.
The decline in imports was entirely in products, which were 18% lower. Crude oil imports rose 3.2%.
Murphy said gasoline demand "appears" to have increased 2.5% in 1995, substantially more than the average 1.4% increase in each of the previous 3 years.
However, he said, much of this apparent change probably is due to enhanced reporting as a result of the reformulated gasoline program. API believes the growth was closer to 1.5%.
"With stagnant demand, refinery margins were under severe pressure for most of the year and provided a strong incentive to minimize costs," Murphy said.
This showed up most dramatically in a drawdown in inventories, which averaged 252,000 b/d during the year.
This drawdown brought the level of total petroleum inventories to 969 million bbl at the end of the year, almost 100 million bbl less than at the end of 1994 and the lowest level in almost 25 years. Much of this reduction was in the form of crude oil stocks, which ended the year at only 303 million bbl, reflecting cost pressures and fewer concerns about supplies.
He said the increase in highway speed limits in some states will have little affect on gasoline consumption. "It is something so small you will not be able to pick it up in the stats."
Drilling
API data show industry drilled an estimated 19,756 oil and gas wells and dry holes in the U.S. in 1995, down 9.3% from the 21,793 in 1994. Gas wells dropped 14% to 8,114, oil wells 1.6% to 6,917, and dry holes 11% to 4,725.
Footage drilled was 113.872 million ft, down 11.8% from 129.065 million in 1994.
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