U.S. PETROLEUM PRODUCTS CONSUMPTION SLIPS

Petroleum products deliveries in the U.S. fell slightly more than 4% in the first 6 months of 1991, compared with 1990, the American Petroleum Institute reported last week. API pegged the slide at 4.1%, the largest decline for a 6 month period since 1983. API said the sluggish U.S. economy caused petroleum deliveries to average 16.322 million b/d this January-June vs. 17.012 million b/d in the same period a year ago.

July 22, 1991

2 min read

Petroleum products deliveries in the U.S. fell slightly more than 4% in the first 6 months of 1991, compared with 1990, the American Petroleum Institute reported last week.

API pegged the slide at 4.1%, the largest decline for a 6 month period since 1983.

API said the sluggish U.S. economy caused petroleum deliveries to average 16.322 million b/d this January-June vs. 17.012 million b/d in the same period a year ago.

API said crude production increased during the first half, the first time that has happened since 1985. Production averaged 7.428 million b/d, up 0.6% from 7.386 million b/d produced in first half 1990.

The combination of those trends caused imports of crude and products to average 7.342 million b/d in the first 6 months, down 13.3% from the 8.466 million b/d tallied a year ago.

Ed Murphy, API finance director, said, "Substantial growth in the economy will have to occur before petroleum consumption increases. From 1987 through 1990 the economy grew by 8%, while oil consumption grew by only 2%. "

Murphy said the slight increase in U.S. oil production may have been prompted by higher prices, but the rates of drilling and servicing of wells have been declining from last year's levels.

API said first half refinery utilization averaged 85.3% of capacity, down more than 1 percentage point from 86.8% of a year ago. On the basis of capacity in operation, utilization averaged nearly 89% for the first half, the lowest rate for a similar period since 1987.