OPEC Says Oil Demand Could Peak In Late 2030s Due To EVs

The Organization of the Petroleum Exporting Countries, otherwise known as OPEC, says that rising sales for electric cars might cause global oil demand to peak and flatten out by the year 2040.

Apparently, if a quarter of the world’s cars will run on battery power alone, global oil demand could plateau at roughly 109 million barrels per day in the second half of the 2030s, reports Bloomberg.

Yet, OPEC still expects oil consumption to increase in the following decades as electric cars aren’t likely to dethrone their internal combustion counterparts at such a rapid rate, unless a faster-growth scenario occurs.

“It is highly unlikely that electric vehicles will penetrate the passenger car segment with this strength in less than 24 years,” stated the recently published report. “Nevertheless, several countries have publicly stated their intention to achieve an even higher share of electric vehicles in new sales.”

Oil companies are paying increased attention to markets such as France, the UK and even China, as plans to ban the sale of fossil-fuel burning cars in the next couple of decades have already been announced. OPEC sees only 8% of the global light vehicle fleet running on batteries by 2040, with little impact on oil use, whereas Bloomberg New Energy Finance thinks that a third of cars will be fully-electric by then.

Another tech-movement that could affect oil demand is the mass adoption of car-sharing services, such as those offered by Uber and Lyft. In America, car sharing and ride hailing services could accelerate the decline in oil demand all the way to a 7% drop by the year 2040.

Meanwhile in China, these services could shrink the car fleet and cause oil demand to peak in 2035, before dropping marginally in the next five years.

PHOTO GALLERY

  • Leconte Dave

    Saudi princes are going broke?

    • Six_Tymes

      nah, they have so much filthy money to last 10 generations

    • Status

      The Saudi’s had enough foresight to create a sovereign wealth fund. They knew from the start that when the oil ran out that they would be shit outta luck. The money goes into long term investments, as well as funding small extremist groups to perpetuate corrupt and broken Islamic theocratic policies that harm secular societies.

  • Six_Tymes

    said opec geniuses. an ant could have predicted that.

    • Bash

      And not even a smart one! lol

  • DR.FUNK

    No complaints here if it happens faster than that.

  • fabri99

    So what? We should reject progress because OPEC needs to sell us oil? Where they expecting to last forever?

  • Michael_66589

    If there will be more EVs on a streets in China, America and Western Europe, oil demand will be smaller. Than fuel will be cheaper around the world and in rich countries people will start buying less efficient engines, in poorer countries people which use nowaday public transport will buy first car. People everywhere in the world will also travel more by car so finally demand for will be higher and OPEC still will be earning a lot.

  • Craig

    “109 million barrels per day.” Some numbers are hard to wrap your mind around.

  • Ali Mansouri

    I dont get it, how rising sales for electric cars would cause global oil demand to peak? shouldn`t it be the other around?

    • James Denz

      It just means that the current rapid growth in crude oil demand will finally wither a bit in the next 20 years.

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