This August U.S. gasoline consumption hit a new peak of 9.7 million barrels a day, a growth in demand that many oil bulls believe will be the driver for higher crude oil prices. Specialists are forecasting a increase of gasoline consumption by 1.9% to 9.33 million barrels a day in 2016, it means the record set in 2007 will be surpassed. Even though the gasoline growth is stronger than ever now, a downside in the industry is still predicted.
Fuel efficient vehicles are likely to gain more popularity on greater environmental awareness. The world started to realize the need for cleaner and greener earth. The popularity of cleaner energy resources around the world is testament of the change. The Obama's administration tries to reduce carbon emissions and require the automakers to develop highly fuel efficient vehicles that average 54.5 miles per gallon by 2025. If successful, it will be a quantum jump over the 25.5 miles per gallon clocked during 2009 when the program was launched. Even if the vehicle miles traveled will increase, the total gasoline consumption is likely to reduce considering the more fuel efficient vehicles in the market.
In China the government has even cut taxes on small-engine fuel efficient cars by half in October 2015, of course it brought to fuel efficient car sales increase. This strategy is a good one for U.S. too, and there is a high chance it will be considered.