Mercedes Mullins
Fossil fuels, including coal, oil, and gas, are the primary sources of energy worldwide, with over ten billion tonnes burned annually to meet our energy needs. The burning of fossil fuels releases carbon dioxide (CO2) and is the largest driver of global climate change. Despite the availability of renewable energy sources such as hydroelectric, wind, and solar power, the world still relies heavily on fossil fuels for electricity production and transportation. This raises important questions about our daily fuel consumption and the environmental impact of our energy usage.
| Characteristics | Values |
|---|---|
| Global oil consumption per capita | 5 barrels of oil (about 197 gallons) per person yearly (based on the 2016 world population of 7,558,554,526) or 0.5 gallons per capita per day |
| Global oil consumption | 2.7 million gallons a minute |
| Oil burned since 1980 | 40 trillion gallons |
| Oil burned in the US in 2017 | 391 million gallons of gasoline per day |
| Oil's share of electricity production | Small share, most electricity comes from coal and gas |
| US share of world's natural gas consumption in 2020 | 22% |
| US share of world's natural gas production in 2020 | 24% |
| US coal consumption in 2020 | 19% of energy consumption |
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What You'll Learn
Global oil consumption
On a per-capita basis, global oil consumption is about 5 barrels of oil (approximately 197 gallons) per person yearly, or 0.5 gallons per person per day. This figure is based on the 2016 world population of 7,558,554,526. However, consumption varies widely between countries and is often a reflection of population size rather than actual per-capita consumption. For example, in 2017, the United States burned 391 million gallons of gasoline per day, which equates to more than a gallon per person per day.
Oil is a fossil fuel that has been powering economies for over 150 years and currently supplies about 80% of the world's energy. The burning of fossil fuels releases carbon dioxide (CO2) and other greenhouse gases into the atmosphere, contributing to global climate change and local air pollution. In 2020, oil was the largest source of US energy-related carbon emissions. Despite a drop in oil consumption in 2020 due to the COVID-19 pandemic, consumption is expected to rebound to 2019 levels in the coming years.
However, the long-term future of oil is uncertain as economies transition towards sustainable renewable energy sources. Cleaner technologies such as hydropower, biomass, wind, geothermal, solar energy, and nuclear energy offer zero-carbon alternatives to fossil fuels. As low-carbon sources of energy become more readily available, the world needs to rapidly shift away from oil and other fossil fuels to mitigate their negative environmental impacts.
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Fossil fuels and climate change
Fossil fuels – coal, oil, and gas – are the largest contributor to global climate change. They account for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions. When fossil fuels are burned, they release large amounts of carbon dioxide, a greenhouse gas, into the atmosphere. Greenhouse gases trap heat in the atmosphere, causing global warming.
The average global temperature has already increased by 1°C, and global temperatures passed the critical 1.5°C milestone for the first time in 2024. Warming above 1.5°C risks further sea level rise, extreme weather, biodiversity loss, species extinction, food scarcity, and worsening health and poverty for millions of people worldwide. The ocean soaks up most of the heat from global warming, and as the ocean warms, its volume increases, contributing to rising sea levels. Melting ice sheets also cause sea levels to rise, threatening coastal and island communities.
Fossil fuel emissions must be halved within the next decade if global warming is to be limited to 1.5°C above pre-industrial levels. However, global emissions from fossil fuels rose by 1.1% in 2023 compared to 2022 levels, bringing total fossil fuel emissions in 2023 to 36.8 billion metric tons of carbon dioxide. This is in addition to the vast quantities of fossil fuels burned in previous years. Since 1980, the world has burned nearly 40 trillion gallons of oil, enough to cover the state of California in oil to a depth of 14 inches. In 2015, global oil consumption was 5 barrels of oil (about 197 gallons) per person yearly, or 0.5 gallons per capita per day. As of 2015, the world was burning 2.7 million gallons of oil-derived fuels per minute, and global consumption has continued to increase since then.
To limit global warming, a mass switch to renewable energy sources is necessary. Globally, just over a quarter of electricity comes from wind, solar, and other renewable sources, which emit little to no greenhouse gases or pollutants into the air.
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Gasoline usage in the US
The United States is one of the largest consumers of gasoline in the world. In 2022, Americans used about 135.73 billion gallons of gasoline, including 134.55 billion gallons of finished motor gasoline (about 368.63 million gallons per day) and about 0.19 billion gallons of finished aviation gasoline. Texas and California have historically accounted for the largest shares of total U.S. motor gasoline consumption. Motor gasoline is one of the most consumed fuels in the United States, and it is the main product that U.S. oil refineries produce.
The high consumption of gasoline in the U.S. is largely driven by its use in the transportation sector. Light-duty vehicles, including cars, sport utility vehicles, and small trucks, account for about 91% of all gasoline consumption in the country. The number of vehicles on the road has increased significantly since 1970, with an average of 545 vehicles per 1,000 people in the 1970s, compared to around 830-840 vehicles per 1,000 people today. This increase in vehicle ownership has contributed to the overall rise in gasoline consumption over the years.
While vehicle ownership has increased, the average fuel economy of the U.S. vehicle fleet has also improved. Automakers have made advancements to enhance fuel efficiency, resulting in vehicles that are larger and more powerful but consume less gasoline. Additionally, economic factors, such as high gas prices, have influenced consumer preferences for more fuel-efficient vehicles. These factors have played a role in stabilizing or even reducing gasoline consumption per capita, despite the overall increase in vehicle ownership.
In recent years, there has been a growing trend towards electric vehicles and alternative fuel sources. This shift is expected to impact gasoline consumption in the long term. According to some experts, the U.S. may have already reached peak gasoline consumption. Factors such as improvements in fuel economy, the adoption of electric vehicles, and changes in driving habits could contribute to a stabilization or decline in gasoline usage. However, with population growth and an increasing number of vehicles on the road, the overall demand for gasoline is likely to remain significant in the coming years.
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Natural gas usage
Natural gas is a fossil fuel that is used globally for various purposes, including power generation, industrial processes, and residential heating. According to statistics, the world consumed approximately 132,290,211 million cubic feet (MMcf) of natural gas per year as of 2017. This equates to about 17,303 cubic feet of natural gas per person per year, or 47 cubic feet per person per day.
The usage and consumption of natural gas vary across different regions and countries. The United States, China, Russia, and Europe are among the major consumers of natural gas globally. In the United States, natural gas is utilized for electricity generation, industrial operations, and residential and commercial purposes. China's consumption of natural gas has been increasing, supported by higher demand from the power sector and more affordable LNG prices. China now accounts for 11% of global gas consumption, matching Europe's usage.
Russia, contributing to 12% of global gas consumption, has also witnessed a significant increase in natural gas usage. The country's demand for natural gas grew by over 6% due to the development of its domestic gas infrastructure and the conversion of transports to gas and LNG. Europe's consumption of natural gas remained stable after a previous sharp decline, with a slight increase in Germany due to higher industrial and power sector demands.
Other regions, such as Canada, Asia (particularly India, Indonesia, South Korea, and Taiwan), the Middle East (especially Iran and Saudi Arabia), and Africa (notably Nigeria, Algeria, and Egypt) have also experienced growth in natural gas consumption. On the other hand, Japan and Australia have seen reductions in natural gas consumption due to rising carbon-free power generation.
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Oil price trends
Oil prices have historically been subject to fluctuations influenced by various factors, including geopolitical tensions, supply and demand dynamics, and the actions of major oil-producing nations. In the context of daily fuel consumption, understanding oil price trends is essential for evaluating the economic implications of energy usage.
As of the current outlook, the Brent crude oil price is forecasted to average $69 per barrel, reflecting a $3 increase from the previous month's Short-Term Energy Outlook (STEO) released by the U.S. Energy Information Administration (EIA). This bump in price can be attributed to heightened geopolitical risks associated with the conflict over Iran's nuclear program. However, despite this short-term spike, the EIA predicts a downward trend in oil prices over the forecast period. By 2026, the Brent crude oil price is expected to average $58 per barrel, influenced by anticipated builds in global oil inventories.
The production targets set by OPEC+ can significantly influence oil price trends. For instance, their announcement on July 5 to raise production targets for August resulted in targets higher than those assumed in the EIA's outlook. This decision by OPEC+ could contribute to a downward shift in oil prices, contrary to the near-term price increase due to geopolitical tensions.
Another critical factor affecting oil prices is the drilling and completion activity of producers. In this regard, the U.S. crude oil production forecast for 2025 and 2026 stands at an average of 13.4 million barrels per day, marking a slight decline from the second-quarter high of just over 13.4 million barrels per day in 2025. Ethane production and exports are also worth noting, with the U.S. Commerce Department's removal of export license requirements facilitating growing trade between U.S. ethane producers and Chinese petrochemical crackers. This regulatory change is projected to boost U.S. ethane exports to nearly 650,000 barrels per day by 2026.
In summary, oil price trends are shaped by a complex interplay of geopolitical events, production decisions by major oil-producing nations, and the underlying fundamentals of supply and demand. While short-term fluctuations may occur due to specific events, the long-term outlook suggests a downward pressure on oil prices, driven by increasing global oil inventories.
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Frequently asked questions
It is estimated that 2.7 million gallons of oil-derived fuel are burned every minute. This amounts to 391 million gallons of gasoline burned daily just in the United States.
Since 1980, the world has burned nearly 40 trillion gallons of fuel.
Fossil fuels, including coal, oil, and natural gas, have been used to power economies for over 150 years.
Burning fossil fuels releases carbon dioxide (CO2) and other greenhouse gases into the atmosphere, contributing to global climate change and local air pollution, which is linked to millions of premature deaths annually.
Yes, low-carbon sources of energy such as nuclear, hydropower, biomass, wind, geothermal, solar energy, and renewable energy are available and can support a more sustainable energy system.
