During which decade did free world oil demand grow by 21 million barrels per day?

During which decade did free world oil demand grow by 21 million barrels per day?

• A. 1950-1960
• B. 1970-1980
• C. 1980-1990
• D. 1960-1970

Answer: (D)

The trend being tested is how much oil demand in the free world grows over a decade and why that growth occurs. In the 1960s, economies expanded rapidly, personal incomes rose, and vehicle ownership and industrial activity surged. All of these factors push oil consumption higher, and the data show a rise of about 21 million barrels per day over that decade. Other decades don't show that same magnitude: the 1950s were still catching up after World War II, with more modest growth; the 1970s faced price shocks and conservation that tempered expansion; and the 1980s combined efficiency gains with slower economic growth, reducing the growth rate. So the decade from 1960 to 1970 best fits the 21 mbd increase in free world oil demand.

The trend being tested is how much oil demand in the free world grows over a decade and why that growth occurs. In the 1960s, economies expanded rapidly, personal incomes rose, and vehicle ownership and industrial activity surged. All of these factors push oil consumption higher, and the data show a rise of about 21 million barrels per day over that decade.

Other decades don't show that same magnitude: the 1950s were still catching up after World War II, with more modest growth; the 1970s faced price shocks and conservation that tempered expansion; and the 1980s combined efficiency gains with slower economic growth, reducing the growth rate. So the decade from 1960 to 1970 best fits the 21 mbd increase in free world oil demand.