Chevron sees pricey oil destroying demand

Wed Mar 14, 2012 5:20pm EDT

A woman stands at a petrol pump at a Chevron gasoline station in Los Angeles,California April 11, 2011. REUTERS/Fred Prouser

A woman stands at a petrol pump at a Chevron gasoline station in Los Angeles,California April 11, 2011.

Credit: Reuters/Fred Prouser

(Reuters) - Chevron Corp (CVX.N) Chief Executive John Watson sees demand for oil being destroyed in the United States as a result of higher gasoline prices and an underperforming U.S. economy.

"We're seeing that right now," he said. "If you look at the peak in U.S. oil consumption it was about 21 million barrels a day as little as about three years ago. It's now down to about 19 barrels a day ... and high prices are partially contributing to that."

"The other component in the United States is a relatively weak economy," Watson added in an interview aired on CNBC on Wednesday.

(Reporting by Braden Reddall in San Francisco; Editing by Phil Berlowitz)

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Comments (1)
fromthecenter wrote:
Or, it could be more people are ditching their suvs the size of semi’s and buying smaller more efficient vehicles. That was the aim in the place. Just keep speculating and driving the prices up till oil is an afterthought in world history. I hope I live to see the day.

Mar 14, 2012 9:29pm EDT  --  Report as abuse
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