Since reaching a peak of nearly 21 million barrels per day (bbd) from 2004-2007, U.S. oil consumption has fallen off a cliff. It descended below 19 million in 2009 and then after a brief uptick has started falling again. Consumption is now at the level of 1995 and falling.

Motley Fool argues that the trend is likely to continue. It cites three reasons:

1) Natural gas is beginning to replace gasoline in long-distance trucks and cars. This is a permanent trend.

2) Natural gas has all but replaced oil in heating homes. Only in the northeast is oil still used and it is declining there.

3) Fleet mileage has improved dramatically since the recession began, making significant gains in conservation. Not only are cars more fuel efficient but people are buying the smaller models, which was a problem in the days of the Hummer and SUVs.

via RealClearEnergy – U.S. Oil Consumption Falls Off Cliff.