The Strategist

Demand for gasoline and coal rises in USA once again

08/16/2021 - 08:31

The demand for gasoline and coal in the U.S. is increasing compared to last year amid the economic recovery from the COVID-19 pandemic, writes The Financial Times, referring to the report of the Energy Information Administration (EIA) of the Energy Department of the country.

oatsy40 via flickr
oatsy40 via flickr
According to EIA, Americans used an average of 8.6 million barrels of gasoline per day (bpd) in the first half of the year. That year, the same figure was 8.3 million bpd. 

The report notes that US fuel demand growth in the second quarter of this year was stronger than the EIA forecast. Based on that, EIA adjusted its forecast for the whole 2021 to 8.8 million bpd, which would be 10% higher than in 2020. Compared to 2019, however, national gasoline consumption remains markedly lower, then at 9.3 million bpd.

Thanks to the economic and manufacturing recovery, in particular, the amount of electricity sold in the country is also growing. The EIA predicts that they will grow by 2.7% in 2021 after falling by 3.9% in 2020. 

The EIA notes that coal consumption in the energy sector has increased markedly this year, primarily due to higher gas prices. As a result, its production by the end of 2021 should grow by 13% compared to last year - up to 607 million short tons. And its consumption to generate electric power, according to the EIA forecast, will grow by 17% at once. However, according to the Ministry's analysts, already next year this figure will decrease by 9% and will equal the planned figures of long-term forecasts.