Oil Consumption Conundrum

China, the world's #1 coal producer and consumer, still burns coal for 67% of its energy needs. China is the #2 oil consumer at 8% of world use. China imports 33% of its oil consumption needs. In other words, China imports just under 3% of the worlds oil and 33% of China's energy needs are met by 3% of the worlds oil production.

The U.S. is the #1 oil consumer at 25% of world use. More than 200 million light vehicles on U.S. highways, consume 11% of total world oil production, leaving the other 14% for U.S. industry. In other words, our automobiles use 3% more of the worlds oil than all of China.

Efficiency: Japan uses 130 grams of crude oil for every $1 of nominal gross domestic product, against 230 grams in the US and 800 grams for China.

A conundrum? China is credited with 40% of the worlds increase in oil consumption since 2000. How can this be, if China consumes 8% of the worlds oil and actually imports only 3% of the worlds oil to meet 33% of their needs? Perhaps some of the numbers being bandied about are misinformation. Time for another Morley.

Comments

Anonymous said…
These are good observations about China's oil consumption. The hype and illusion from the 24-7 media machine about oil is making someone a lot of money. The stock price of oil stocks following crude prices up are good examples.

It also illustrates a well known principle in the field of psychology about human behavior:

If something is perceived as true in the subject's mind, whether it is or isn't, the consequecnes can become very real to the
individual.