India has surpassed Japan to become the world’s third-largest oil consumer, with its oil demand galloping 8.1 per cent in 2015, according to BP Statistical Review of World Energy released today.
With demand of 4.1 million barrels per day, India is the third-largest consumer behind US (19.39 million bpd) and China (11.96 million bpd). India accounted for 4.5 per cent of world oil consumption in 2015.
India’s demand growth surpassed China’s 6.3 per cent expansion. US oil consumption grew 1.6 per cent, which accounts for 19.7 per cent of the total world pie of 95 million bpd in 2015.
Japan slipped to the fourth spot after its oil usage contracted 3.9 per cent to 4.15 million bpd in 2015. In 2014, it used 4.3 million bpd, ahead of India’s 3.84 million bpd.
The review shows that global demand for primary energy grew only 1 per cent in 2015, which is significantly slower than the 10-year average.
“This reflected continued weakness in the global economy and lower growth in Chinese energy consumption as the country shifts from an industrial to a service-driven economy,” it said.
Oil remained the world’s leading fuel, accounting for 32.9 per cent of global energy consumption and is gaining market share for the first time since 1999. Coal came in as the second-largest fuel by market share (29.2 per cent). Natural gas’ market share of primary energy consumption stood at 23.8 per cent.
“Global oil consumption grew 1.9 million barrels per day (bpd), or 1.9 per cent – nearly double the recent historical average (+1 per cent) and significantly stronger than the increase of 1.1 million bpd seen in 2014,” it said.
Growth was well above recent historical averages in the US (1.6 per cent) and the EU (1.5 per cent) while Japan recorded the largest decline in oil consumption.
“Outside the OECD, net oil importing countries also recorded significant increases: China (6.3 per cent or 7,70,000 bpd) once again accounted for the largest increment in demand while India (8.1 per cent or 3,10,000 bpd) passed Japan as the world’s third-largest oil consumer,” the Review said.
But this growth was offset by weaker growth in oil producers so that oil demand in non-OECD as a whole (2.6 per cent) was below its recent historical average.
Global oil production increased even more rapidly than consumption for the second consecutive year, rising by 2.8 million bpd, or 3.2 per cent, the strongest growth since 2004.
Production in Iraq (7,50,000 bpd) and Saudi Arabia (5,10,000) rose to record levels, driving OPEC production up by 1.6 million bpd to 38.2 million bpd, exceeding the previous record reached in 2012.