Electric Vehicles Expected to Push Oil Demand DownLeave a Comment
- With China now planning to phase out gas-powered cars, automakers are talking about an all-electric future. It could mean a big drop in emissions.
By Erica Gies Oct 10, 2017 read full InsideClimate News article here
A research note from Barclay’s Bank last week summed up what the boom in electric vehicles, along with gains in fuel efficiency, might mean for oil demand—a reduction, by 2025, almost as large as Iran’s total production. And if electric vehicles seize a third of the car market by 2040, the drop in demand would be nearly as much as Saudi Arabia produces.
That kind of jaw-dropping outlook has become increasingly common in recent months amid signs that a tipping point is coming for electric vehicles.
The technology breakthroughs, market forces and government policies might also augur a peak in oil demand, and that would be a big step toward wiping out emissions of greenhouse gases from the automotive tailpipe.
From Europe to Asia, and in parts of the United States, policymakers are talking about how to make it happen.
France and Britain committed in July to ban the sales of all gasoline- and diesel-powered cars by 2040, motivated largely by health concerns about air pollution. Then China, the world’s largest auto market, announced last month that it will set a deadline for automakers to stop selling internal combustion engine vehicles and set emissions targets for automakers. California officials said they want to follow suit.
….General Motors said it would launch 20 new all-electric models by 2023, including two within the next 18 months….
..Earlier this year, Sussmas co-authored a study for Carbon Tracker titled “Expect the Unexpected” that predicted EVs would be cost-competitive with internal combustion engine vehicles by 2020 and have a 35 percent market share by 2035….Carbon Tracker predicts that oil demand will peak as soon as 2020, remain somewhat flat until 2030, then drop off. It bases that analysis in part on its growth projections for EVs, which it says would displace 2 million barrels of oil use by 2035…
…Instead, in China, toxic air pollution from coal plants and car emissions are causing human illnesses and crop failures that have sparked public protests. The government responded to the pollution problem with strong subsidies for EVs, Sussmas said…
…The Energy Information Agency (EIA), which is the data arm of the U.S. energy department, recently projected that worldwide emissions of carbon dioxide from the burning of all fossil fuels—oil, coal and gas—would grow 16 percent by 2040 from the levels of 2015, the year that the nations of the world agreed to the landmark Paris Agreement on climate change that is intended to reverse the trend.
The EIA’s current scenario shows a slowing, but no decline, in global petroleum use. …For EVs to make the most of their emissions-reducing promise, the electricity sector will also have to continue its rapid shift to renewable energy sources.