. This is projected to remain the s

. This is projected to remain the same in 2014, and increase to an average of 2.4
million bpd in 2015 (up 13.0 percent). Given the outlook for world oil demand growth and non-OPEC supply growth, utilization of OPEC production capacity is projected to be little changed
through the end of 2015. Falling OPEC production capacity utilization is expected to keep global oil
prices fairly stable in the international market.
The average consumption of petroleum during 2013 was 18.9 million bpd.10
This was up 2.1
percent from 2012. However, U.S. oil demand has been largely unchanged over the 2009-2013
timeframe following a sharp decline in response to the 2008-2009 financial crisis and the attendant
economic slowdown. Fuel consumption in the transportation sector has declined due to increased
engine efficiency and a drop in miles driven; however, oil demand for fuel, heat, and feedstock
applications in the industrial sector has increased as economic activity has improved.
U.S. crude oil production averaged 7.5 million bpd in 2013, up 14.6 percent from 2012. 11
U.S. crude
oil production has grown at a 6.5.0 percent compound annual growth rate (“CAGR”) over the 2007-2013 timeframe due to production gains from unconventional reservoirs. According to the U.S.
Energy Information Administration (“EIA”), U.S. tight oil production has grown from 0.38 million
bpd in 2007 to almost 2.2 million bpd in 2013, and now represents 22.0 percent of total U.S. crude
oil production. Virtually all of the increase has come from the Eagle Ford play in South Texas and
the Bakken Shale in the Williston Basin of North Dakota and Montana. In the United States,
increased crude oil and Natural Gas Liquids (“NGL”) production has led to a drop in net imports of
oil. At current rates, the United States may become a net oil exporter by 2020.