Electric Cars May Take an OPEC-Sized Bite From Oil Use says Bloomberg Markets

Like we didn’t know what we were doing would work!

by Jessica Shankleman

December 3, 2016 — 1:00 AM EST

Consultant says EVs may curb demand by 2 million b/d in 2035

Global gasoline demand has all but peaked, says the IEA

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 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 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.”

For the entire dtory on Bloomberg Markets