Electrical Vehicles Will Reduce Demand For Oil Worldwide

Electrical Vehicles Will Reduce Demand For Oil Worldwide

Rystad Energy is an independent oil and gas consulting service and business intelligence data firm offering global databases, strategy consulting and research products. The firm recently established offices in Bangalore.

According to the firm, the sales of light duty vehicles will constitute 40 percent of global growth in oil demand. If these sales are partly replaced by electrical vehicles, the demand for oil will be drastically reduced. Aviation, maritime sectors, petrochemicals, building and agriculture are also expected to drive the demand for oil going forward. However, the growth in demand driven by these sectors will not make up for the impact of electrical vehicles. In fact, a peak oil demand scenario could happen in the beginning of the 2030s.

Rystad Energy also made the case that natural gas has an important part to play in India’s future energy mix. Considering the reduced greenhouse gas emissions from natural gas compared to coal, it could also play a crucial part in reaching the Indian pledge under the Paris Agreement. Read More…

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