Daily Energy Report
China Naphtha/LPG imports, Saudi Oil Consumption Myth, Biden LNG permit ban, Russia drone risk , Russian storm disruption, Germany embraces natural gas, EPA auto emissions rule, and more.
Chart of the Day: China’s Demand for Naphtha and LPG is Booming
Summary
Figure (1) above shows the trends in China’s demand for Naphtha and LPG. Demand more than doubled in 10 years with the growth of the petrochemical industry.
EOA’s Main Takeaway
What is surprising here is that while lockdowns reduced demand for gasoline, diesel, and jet fuel, its impact on demand for naphtha and LPG was limited. Demand is expected to continue to grow at a high rate reaching a new record in 2024. The focus on new energy vehicles (electric vehicles) means higher demand for products produced by the petrochemical industry, which means that while electric vehicles will reduce the demand for gasoline, they will increase demand for naphtha and LPG.
Story of the Day: The Myth of Saudi Oil Consumption
EIA: Saudi Arabia Consumed 3.6 Million b/d in Total Liquid Fuels in 2022
TGME: Saudi Arabia, World’s #5 Oil Consumer
EIA: World's Top Producers & Consumers of Oil
Summary
One of the most common mistakes out there is that Saudi Arabia is among the world’s top oil consumers as shown in the links above. No, Saudi Arabia is not the fifth largest oil consumer in the world. It’s not even among the top oil consumers in the world as explained below.
EOA’s Main Takeaway