Petroleum product consumption is at or near all-time highs in Rocky Mountain states

Petroleum product consumption is at or near all-time highs in Rocky Mountain states. The Rocky Mountain region (PADD 4) is the least populous in the United States, but a combination of growing population and increased crude oil production is contributing to higher consumption of gasoline, jet fuel, and distillate fuel oil.

Crude oil production in PADD 4 has been on the rise this year, averaging a record high of 1.02 mb/d year-to-date. Increased drilling activity may be contributing to PADD 4’s record high distillate consumption this year. Distillate fuel oil sales to oil companies for powering drilling rigs and equipment have historically represented ~3%–5% of all distillate fuel consumption in PADD 4.

Much of PADD 4’s production growth in recent years came from Utah, which produces a unique type of waxy crude oil. Its high wax content requires transportation in heated tanker trucks to refineries and rail terminals, which also contributes to increased diesel consumption.

A rising population in the region has contributed to more driving and flying, resulting in increased gasoline and jet fuel consumption. Except for Wyoming, the other states in PADD 4 (Utah, Colorado, Montana, and Idaho) grew their population at a faster rate than the United States as a whole.  Vehicle miles traveled data from the Federal Highway Administration show that driving activity reached an all-time high in Colorado and Utah this summer.