Crude oil and other liquids produced from fossil fuels are refined into the petroleum products that we use for many different purposes. Biofuels, such as ethanol and biodiesel, are also used as petroleum products, mainly in mixtures with petroleum.

Did You Know?

Over 2/3 of total U.S. petroleum consumption is for transportation, and almost 2/3 of transportation sector petroleum consumption is gasoline.

The United States consumes more energy from petroleum than from any other energy source. In 2008 total U.S. petroleum consumption was 19.5 million barrels per day, or 37% of all the energy we consumed.

When petroleum products are burned to produce energy, they may be used to propel a vehicle, to heat a building, or to produce electric power in a generator.

In addition, petroleum may be used as a raw material (a "feedstock") to create products such as plastics, polyurethane, solvents, asphalt, and hundreds of other intermediate and end-user goods.

What Are the Main Petroleum Products We Consume?

In 2007, gasoline consumption reached a record high of 9.3 million barrels a day (or 391 million gallons per day), before declining to about 9.0 million barrels per day in 2008. About 7% of the gasoline consumed in 2008 was actually ethanol mixed with gasoline.

Petroleum Products Consumed in 2008
Product Annual Consumption (Million barrels per day)
Finished Motor Gasoline 8.989
Distillate Fuel Oil (Diesel Fuel and Heating Oil) 3.945
Liquefied Petroleum Gases (LPG) 1.954
Kero-Type Jet Fuel 1.539
Petroleum Coke 0.464
Still Gas 0.670
Residual Fuel Oil 0.622
Asphalt and Road Oil 0.417
Other Oils for Feedstocks 0.304
Naptha for Feedstocks 0.248
Lubricants 0.131
Miscellaneous Products 0.067
Kerosene 0.014
Special Napthas 0.044
Finished Aviation Gasoline 0.015
Waxes 0.009
Total Petroleum Products 19.498

Source: U.S. Energy Information Administration

Distillate fuel oil includes diesel fuel and heating oil. Diesel fuel is used in the diesel engines of heavy construction equipment, trucks, buses, tractors, boats, trains, and some automobiles. It accounts for about one-fifth of total transportation fuel consumption and about 16% of total petroleum consumption. Heating or fuel oil is used to heat homes and buildings, for industrial heating, and for producing electricity. Total distillate fuel oil consumption in 2008 was 3.9 million barrels per day, or 22% of total petroleum consumption.

Liquefied petroleum gases (LP-gases or LPGs) are mixtures of propane, ethane, butane, and other gases that are produced at natural gas processing plants and oil refineries. LPG consumption in 2008 was 2.0 million barrels per day.

Propane, the major LPG consumed, is used in homes for space and water heating, clothes drying, cooking, and by farmers for heating greenhouses and livestock housing and drying crops. The chemical industry uses about half of all the propane consumed in the United States as a raw material for making plastics, nylon, and other materials. While only a small fraction of propane is used in vehicles, it is the largest alternative transportation fuel in use today.

Jet fuel, like gasoline, is nearly all used for transportation. Jet fuel consumption in 2008 was 1.5 million barrels per day.

Top Five Gasoline Consuming States, 2008

State Million Barrels/Day Million Gallons/Day Share of Total U.S. Consumption
California 0.98 41 11%
Texas 0.83 35 10%
Florida 0.50 21 6%
New York 0.36 15 4%
Illinois 0.33 14 4%

How Much Petroleum Does the World Consume?

Worldwide consumption of petroleum was 85.4 million barrels per day in 2008. The three largest consuming countries were:

  • United States (19.5 million barrels per day)
  • China (7.9 million barrels per day)
  • Japan (4.8 million barrels per day)

What Is the Outlook for U.S. Petroleum Consumption?

EIA projects that most petroleum-based and non-petroleum based liquid fuels — including those derived from fuels such as coal, biomass, and natural gas — will continue to be used for transportation over the next two decades.

line graph showing liqyid fuels consumption by sector, 1990-2030 in million barrels per day
Click to enlarge »

Source: U.S. Energy Information Administration, Annual Energy Outlook 2009, Figure 73, March 2009.

Projections to 2030 show consumption of petroleum-based motor gasoline declining while biofuel consumption grows with government mandates. Diesel fuel consumption expands as more light-duty diesel vehicles are produced by automotive manufacturers seeking to comply with new fuel economy standards. Diesel fuel use for freight trucks also increases as industrial output expands.

In the other sectors (industry, buildings, and electricity generation) liquid fuels consumption is projected to decline slightly through 2030.