Electric Cars May Take an OPEC-Sized Bite From Oil Use says Bloomberg Markets
First of all, can we say bye to global gasoline demand? Like we didn’t know what we were doing would work! Consultant says EVs may curb demand by 2 million b/d in 2035. Global gasoline demand has all but peaked, says the IEA.
by Jessica Shankleman
December 3, 2016 — 1:00 AM EST
As written before, electric cars are cleaner and cheaper to fuel and maintain – and we need to build out the electric vehicle (EV) market so more drivers can reap the benefits. The progress we’re making on EVs is vital to cut our oil use and reduce emissions. However, it’s also a threat to some very powerful industries that have launched a lobbying campaign. One to interfere with pro-EV policies like a tax credit.
A boom in electric vehicles made by the likes of Tesla Motors Inc. could erode as much as 10 percent of global gasoline demand by 2035, according to the oil industry consultant Wood Mackenzie Ltd.
While battery-powered cars or EVs and trucks today represent less than 1 percent of total vehicle sales, they are expected to take off after 2025 as governments move to tackle pollution and costs fall, the Houston-based analyst said. By 2035 so-called EVs may remove 1 million to 2 million barrels a day of oil demand from the market — in the range of the production cut OPEC and its allies agreed this week in order to end a three-year crude surplus.
“Anything that reduces the global gasoline demand for transportation has an impact on the oil market,” Alan Gelder, vice president of refining, chemicals and oils markets at Wood Mackenzie, said in an interview in London. “The question is how big is it going to be and what’s the time frame.”