India beats Japan to become world’s 3rd largest oil consumer, US stays on top

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 has surpassed Japan to become the world’s third-largest oil consumer, with its oil demand galloping 8.1% in 2015, according to BP Statistical Review of World Energy.

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).(File Photo)

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% of world oil consumption in 2015. India’s demand growth surpassed China’s 6.3% expansion.

US oil consumption grew 1.6%, which accounts for 19.7% of the total world pie of 95 million bpd in 2015.

Japan slipped to the fourth spot after its oil usage contracted 3.9% 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% 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% 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%). Natural gas’ market share of primary energy consumption stood at 23.8%.

“Global oil consumption grew 1.9 million barrels per day (bpd), or 1.9% – nearly double the recent historical average (+1%) 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%) and the EU (1.5%) while Japan recorded the largest decline in oil consumption.

“Outside the OECD, net oil importing countries also recorded significant increases: China (6.3% or 7,70,000 bpd) once again accounted for the largest increment in demand while India (8.1% 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%) 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%, 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.