US beats China’s oil demand growth in 2013

Oil demand in the United States grew at the fastest pace in the world in 2013, outstripping China for the first time since 1999 according BP in its latest annual review of energy statistics unveiled in Moscow.

The annual review, first published in 1951 and considered an industry benchmark, showed US oil consumption in 2013 grew by 400,000 bpd to 18.9 million bpd, the sharpest gain in the world, followed by China’s rise of 390,000 bpd to 10.8 million bpd.

BP also raised its global oil reserves estimate by 1.1 percent after revising US reserves upwards by more than a quarter. Global natural gas reserves were cut for a second year as lower provisions for Russia and Qatar offset a significant uptick in US estimates.

BP also said the United States recorded its largest-ever annual rise in oil production for a second year in a row with a 13.5 percent increase to above 10 million barrels per day (bpd).

The consumption growth was led by an expansion of the US industrial sector as the world’s top economy emerged from the 2008 financial crisis. At the same time, a Chinese slowdown was driven mainly by lower consumption of diesel and gasoil, which traditionally reflect the rate of economic growth.

China’s economic growth hit a 14-year low in 2013, a decline that accelerated in the first part of this year as Beijing leads a wide drive to reform the country’s economy.

Overall, China’s energy consumption growth slowed to around 4.7 percent in 2013 from a 10-year average of 8.4 percent despite the fact that Beijing officially reported a 7.7 percent rise in gross domestic product last year, Ruhl said.

Global oil production – up 560,000 bpd, or 0.6 percent – failed to keep pace with growth in oil consumption. Output disruptions from Libya, Nigeria and Iraq due to political strife were almost entirely offset by growth of 1.1 million bpd in US output.