Growing numbers of electric vehicles and changes in regulations on plastics will cause oil demand to peak by the late 2030s, BP has predicted.
Total oil consumption expanded at the fastest pace in 14 months to 16.9 million tons from 15.3 million a year ago, according to the oil ministry’s Petroleum Planning and Analysis Cell.
Global Oil Demand Is Estimated To Plateau Around In The Second Half Of The 2030s On Increasing EV Penetration In The Passenger Car Segment
Global population is estimated to increase from 7.3 billion in 2015 to 9.2 billion in 2040, stated OPEC in World Oil Outlook (WOO). Organization of the Petroleum Exporting Countries (OPEC) further stated, the additional 1.8 billion people will mainly come from Developing countries.
Despite the turbulence in the oil markets due to the previous weeks’ hurricanes, OPEC’s latest report has painted a reassuring picture, indicating that the rebalancing of the oil market may be underway.
Global oil demand could peak as early as 2024 if there are more efficiency gains in vehicles, greater market penetration by electric cars, lower economic growth and higher fuel prices, Goldman Sachs said in a research note on refining on Monday.
The falling cost of electric vehicle and solar technology will halt demand growth for oil and coal from 2020, according to research published on Thursday, posing a threat to fossil fuel companies unprepared for the transition