Efficiency Fuels Demand: How Innovation Is Driving a New Surge in Oil Consumption

This whitepaper by VanEck, led by Product Manager Alessandro Valentino, examines the counterintuitive rise in global oil consumption amid energy transition efforts, highlighting structural, economic, and technological drivers that sustain oil’s dominance.

• Efficiency gains, including fracking and advanced drilling, have lowered extraction costs, paradoxically increasing oil consumption—a phenomenon explained by the Jevons paradox.

• The U.S. now leads in both oil production and consumption, with fracking unlocking vast shale reserves and supporting China's growing petrochemical sector.

• Despite climate commitments, infrastructure inertia and petrochemical demand are projected to drive long-term oil growth, particularly in emerging markets.

Explore the full report to understand how energy innovation is shaping global demand—and what it means for your investment strategy.