Interesting graphic - Electric cars and their impact on oil consumption
As the world moves towards electrification of the transport sector, the demand for oil will be replaced by the demand for electricity. The infographic attached below shows how much oil has been and will be saved every day between 2015 and 2025 by different types of electric vehicles, according to BloombergNEF.
How much oil will electric vehicles save? A standard passenger vehicle internal combustion engine in the United States consumes about 10 barrels of oil equivalent (BOE) per year. A motorcycle uses 1 BOE, a truck about 244 BOE, and a bus more than 276 BOE per year. When these vehicles become electrified, the oil that their internal combustion engines would have consumed is no longer needed and is replaced by the demand for electricity.
Overall, this shift to electric vehicles will result in a significant decrease in oil demand. The International Energy Agency estimates that up to 70% of vehicles may be electric by 2040. This could reduce global oil demand by 8 million barrels per day.
Do you see this as a risk to your stock positions in the energy sector($CVX+1.6%, $XOM+2.2%, $OXY+2.1%, etc.)?
Unfortunately, oil will always be needed, but it could be significantly less.
Nicely done... this electromobility is starting to annoy me more and more... :)
Oil will still be needed elsewhere and I think that the increase of electric cars will not be that fast, maybe Europe will be "fast" but Africa, Central and South America, Asia...plus the oil deposits are not infinite
Recently Václav Smil was visiting here, so try to read some interviews about EVs what he thinks about it and while you are at it, get some of his books about oil;) If someone thinks that by 2040 there will be 70% EVs running everywhere, then he should tell us where the subway will come from and how it will help green politics.
Whether you like it or not, electric cars are the future and will gradually replace cars with combustion engines. This will reduce the demand for oil. It will just take time, but it will certainly have an impact on oil production.
Although the electrification of road transport poses a significant threat to oil demand, oil will remain an important raw material in the chemical, aviation, shipping and other sectors. So the complete extinction of oil is still a long way off, which is why I'm not afraid to hold on to energy stocks. That downturn is still a long way off.