The transport sector is heavily dependent on oil products. Ninety-five percent of the energy requirements of transportation are met by oil products. During the period 1971–2006, global energy use for transport grew steadily at a rate of 2–2.5 percent per year, closely mirroring global economic growth. More than 60 percent of the petroleum products consumed in the Organization for Economic Cooperation and Development (OECD) countries – and about 50 percent in non-OECD countries – were used to meet transportation demand. This is partially attributed to a trend of credit expansion by international banks to finance car loans leading to accelerated car ownership. This trend will be reversed in the future, and transportation needs in developing countries will be the prime driver of the growth in global oil demand, accounting for nearly 90 percent of the total increase through year 2035. In OECD countries, the projected decline in demand for oil is primarily due to shrinking demand for road transportation, mainly as a result of improving vehicle fuel economy, a modal shift to more public transportation, and a slowdown in the rate of growth of car ownership.

There are a number of reasons for transport oil-dependence. Oil products such as gasoline and diesel have proven to be extremely effective transport fuels, with high energy density and relatively easy handling/transportation characteristics.