1999 Subaru Outback Should a new car "consume" oil

1999 Subaru Outback mileage: 16,000. Should a new car "consume" oil? Where does it go? I have checked my oil level 3,500 miles after my last oil change and found the dipstick reading dry or just a bit of oil on the tip. The dealer says my oil consumption is normal (1 qt per 1500 miles). I asked if the oil burns off, and got the answer that it consumes oil. Does this sound accurate? Is it related to the type of engine?