China's high rate of economic growth at three times the predicted rate of the United States in 2011 and their huge increases in vehicle sales make their thirst for oil almost unlimited
Oil Consumption and Prices: How High Will They Go?
Predictions for oil consumption, domestic and global, and oil prices vary, but with $3.00 per gallon gasoline prices hitting dug the holidays, the outlook for 2011 seems to be for even higher prices at the pump. Numerous reasons prevail for higher prices and higher consumption. Globally, China and some other developing countries recovered from the global recession rather quickly compared to many developed countries and are in need of even more energy to fuel their rate of economic growth. China, who recently took over the number one slot in auto sales from the United States, is continuing to see huge growth in those sales, partially spurred by government incentives for small, efficient vehicles and vehicle growth in rural areas. Further, not only is economic growth spurring additional oil consumption in China, but the country is intent on filling its strategic petroleum reserve over this decade, increasing oil demand and prices even more.
