Reduced demand 1980s oil glut

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world energy consumption, 1965–2013, showing oil demand falling in 1980s


opec had relied on price inelasticity of demand of oil maintain high consumption, underestimated extent other sources of supply become profitable prices increased. electricity generation coal, nuclear power , natural gas; home heating natural gas; , ethanol blended gasoline reduced demand oil.


usa

new passenger car fuel economy in rose 17 mpg in 1978 more 22 mpg in 1982, increase of more 30 percent.


the imported 28 percent of oil in 1982 , 1983, down 46.5 percent in 1977, due lower consumption.


brazil







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