U.S. Demand For Gasoline Has Peaked

As improbable as it sounds, the U.S. hit 'peak gas demand' in 2006 at 9 million barrels per day. By 2030, experts predict it will be 20% lower. The decline is attributed to driving less, more efficient vehicles, and the addition of ethanol to gas.

1 minute read

December 22, 2010, 8:00 AM PST

By Irvin Dawid


Current gas consumption is 8 MBD, excluding the ethanol addition. While the current recession is one reason for Americans driving less - don't expect demand to increase when the economy improves. Unlike traditional times when prices fell with demand, the world's developing economies will make up for the drop in sales to developed nations, and then some.

"But while fuel consumption has rebounded in the past, experts says this time it's different: demand has dropped for good."

"A combination of demographic change and policy change means the heady days of gasoline growing in the U.S. are over," says Daniel Yergin, chairman of IHS Cambridge Energy Research Associates."

But the experts have proven wrong before.

From AP: US gas demand should fall for good after '06 peak: "Sometimes what we think is a structural shift is really just a temporary phase," says Antoine Halff, an analyst at the brokerage firm Newedge. "U.S. demand has rebounded with a vengeance before."

Thanks to Gladwyn d'Souza

Tuesday, December 21, 2010 in The (Lehigh

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business