Crude world has undergone massive transformation in recent months. Gone are the days when the issue of “peak oil” was dominating headlines. That has receded into the background. The very issue of peak demand is now getting on to the center stage and is starting to impact things all around.
Demand has already peaked in Western, industrialized countries. Everyone from IEA (International Energy Agency) to OPEC now seems to agree. However, with demand continuing to rise in the emerging economies of Asia, not everyone was initially concerned. Eyes remained glued to China as the brightest star on the horizon as far as crude consumption was concerned.
However, producers are beginning to get skeptic of the emerging realities. The concept of peak demand has apparently crept into the industry mainstream. Drop in global oil use last year caused by the economic slowdown and coupled with efforts to combat climate change and use oil more efficiently are starting to hurt the industry psyche.