U.S. petroleum deliveries reached almost 20.7 million barrels per day in July, up 4.9% year over year and the highest on record in the last 10 years, according to the American Petroleum Institute (API).
In terms of monthly growth, total domestic petroleum deliveries rose 1.6% from June. Demand also increased 1.3% year-to-date compared to the same period in 2016. The institute, which established the API 653 tank inspection standards, also published a monthly report that listed the highest record for petroleum demand in July since 2007.
API Director of Statistics Hazem Arafa said that the strong demand for petroleum indicates a positive direction for the economy. It also bodes well for consumers since this good sign of economic growth likely means relatively low energy prices. For motor gasoline, API noted that demand rose 1.0% to average almost 9.7 million barrels per day, although year-to-date deliveries fell at the same rate versus the same period in 2016.
While demand for petroleum increased in July, imports also fell, according to the API. Total petroleum imports nationwide 6.2% year over year and 3.8% from June. This simply means that the country has become more energy independent and reliant on its resources to produce fuel.
The U.S. Energy Information Administration (EIA) said that almost all crude oil resources in the country are refined into gasoline and diesel fuel among other petroleum products. In 2016, consumption of petroleum products reached a total of 7.19 billion barrels or around 19.63 million barrels per day on average.
The record growth of petroleum deliveries in the U.S. signals a need for more storage solutions. Energy companies should find ways to meet the increasing demand by investing in liquid storage tank services, as the API’s statistics in July may indicate continual growth in production.