Transportation and petrochemicals are the two sectors that are clearly driving future energy demand, Birol said. But trucks, not cars, are behind the growing consumption of oil. One-third of the volume of growth is caused by truck traffic, and the IEA expects diesel demand to grow three times faster than demand for gasoline.
The growing demand for oil from the petrochemical industry is due to plastics for industrial and consumer goods, and packaging—everything from smartphones to water bottles.
Another big factor in demand is fossil fuel subsidies, which the agency estimates totaled $544 billion last year. Oil was the most heavily subsidized fuel, accounting for 51 percent of the total. Consumption subsidies were largely centered in net energy-exporting countries, or 75 percent of the total.
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