50 percent crash in crude oil in matter of just 6 months has shaken entire world and had left economies such as Russia, Venezuela and other oil dependent countries in shambles. Analysts are puzzled whether the fall is due to the slowdown in world economic growth or is it because we are producing more oil than we can consume. As per the following Bloomberg info-graphic, it seems that later is the more likely case as the world largest consumer of oil is producing more oil today than it produced in last 30 years coupled with falling oil consumption.
Key Highlights for the supply demand scenario of oil in America:
1. Domestic oil production in U.S has surpassed 9 million barrels per day, due to shale oil boom, which is highest in 30 years.
2. United States of America is consuming the least oil per dollar of GDP in 4 decades.
3. Even with rising GDP the consumption of gasoline is falling since 2007 and is currently around 8.8 million barrels per day vs 9.3 million barrels per day in 2007.
4. Americans are turning more towards green energy as the consumption of renewable energy has almost doubled since 2001.
5. U.S import of Oil has fallen by 40% since 2006 while it's production has risen by same proportion.
Also Watch: How is the price of oil determined?
Also Watch: How is the price of oil determined?
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