Estimation question

Estimate the fuel consumption of cars in USA.

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What this question tests

Structured estimation combining vehicle counts, mileage and fuel efficiency assumptions into a national consumption figure.

How to approach it

  1. Estimate the number of registered cars in the US, roughly 270 to 280 million.
  2. Estimate average annual miles driven per car, around 12,000 to 13,000 miles.
  3. Estimate average fuel efficiency across the fleet, blending older and newer cars, roughly 25 miles per gallon.
  4. Divide total miles driven by fuel efficiency to estimate total gallons consumed annually.
  5. Sanity check the resulting figure against a plausible sense of US gasoline demand scale.

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