Low distillate consumption in the United States: factors and trends

Biofuels: decreasing diesel consumption

These indicators signal moderate economic activity in the United States. On one hand, industrial production has declined on an annual basis for several consecutive months, while truck freight transportation has shown year-on-year decreases for over a year.

On the West Coast, the preference for biofuels, particularly renewable diesel, is significantly impacting petroleum-derived fuel consumption. Clean fuel programs continue to promote biofuel use, resulting in increased consumption of renewable diesel and biodiesel in the region. The combined consumption of renewable diesel and biodiesel on the West Coast has reached levels close to its historical peak, while petroleum distillate consumption has hit its lowest point in decades.

In summary, the low distillate consumption in the U.S. reflects a combination of factors, from weather conditions to changes in energy preferences and economic activity. The trend toward biofuel substitution, especially on the West Coast, is reshaping the fuel market, likely with long-term implications for the country’s oil and energy industry.

Although renewable diesel currently represents only a small percentage of total distillate and biofuel consumption in the U.S., according to the EIA report, continuous growth is expected in the coming years, which will likely continue displacing petroleum distillate.