Report: U.S. oil demand on permanent slide

The United States has long been the world’s largest gas-guzzling nation, but a new trend suggests the U.S. could be slashing its thirst for oil. After almost 70 years of increased consumption, the U.S.’ oil consumption has declined over the past four years.

Although the economic fallout of 2008 is partly responsible for the U.S.’ declining oil demand, the U.S government – and even the CEO of Exxon Mobile – says that U.S. oil consumption has officially reached its peak and will not return to 2006’s record levels.

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

American’s are currently burning 344 million gallons of gasoline per day, which is 8 percent less than 2006’s recorded levels. Moreover, fuel economy standards will become more stringent beginning in 2012, culminating in a required fleet average of 35.5mpg in 2016.

Biofuel regulations are also expected to decrease oil demands. Per U.S. regulations, the nation’s fuel mix must include 36 billion gallons of ethanol, up from 2011’s standard of 14 billion gallons.

Although a sudden resurgence in the nation’s economy coupled with lower gas prices could lead to a small bump in fuel consumption, the current trend is expected to continue indefinitely – despite the fact that there will be 27 million more cars on our roads by 2020. By 2030, some estimate that the U.S.’ gasoline consumption will be down to just 5.4 million barrels today, roughly on par with 1969 levels.

However, the U.S. is expected to remain the world’s largest consumer of oil for the foreseeable future. Even with recent growth, China accounts for half the oil consumption of the U.S.