Electric Vehicle Penetration Of The Oil Industry 2025 Will Significantly Reduce Production

- Oct 12, 2017-

, according to automotive news website Hybridcars barclays analyst forecasts, due to the popularity of electric cars and fuel efficiency, oil consumption will have big break in 2025, when the daily oil consumption reduction is approximately equal to the daily output of Opec's third largest oil producer, Iran.

Commodities analyst at Barclays (Barclays), according to a recent survey study published in the last week to 2025, the popularity of electric cars and fuel efficiency will make automobile oil consumption reduce 3.5 million barrels a day.

That is roughly equivalent to the output of Iran, OPEC's top three oil producer.

Iran now produces about 3.8 million barrels a day, Reuters reported.

By 2040, electric vehicles account for one-third of the car market, and that would reduce oil consumption by nine million barrels a day, or about 90 percent of Saudi Arabia's daily production, the report said.

Opec expects world oil demand to reach 96.8 million barrels a day this year.

In addition, according to the report, the world's top auto market in the near future to proposal to ban or restrict the use of traditional fuel vehicle, including France, Germany, the UK, in western developed countries have made a gesture, and DaTiLiang emerging markets such as China, India also have similar ideas.

California, meanwhile, is considering a ban.

However, the barclays report also points out that the popularity of electric cars faces multiple obstacles.

For example, consumers may have doubts about the price of electric cars and battery life, and it's also a question of when the auto industry can accelerate the production of electric vehicles and complete the transition.

Although the range of electric vehicles will increase significantly in the next few years, the early sales of electric vehicles are still a drop in the bucket.

Global sales of electric vehicles rose 40 per cent last year as carmakers unveiled better performance and more versatile electric vehicles, according to the iea.

But about 2 million electric vehicles are on the road, which is less than 0.2 percent of the global light-vehicle market.

In addition, falling oil prices are encouraging consumers to buy big passenger cars such as suvs.

Last year, fuel efficiency was the lowest since 2009, according to data released by the international energy agency on Thursday.

Some energy advisers blame the slow roll-out of new fuel-efficiency policies.

Data points out that light vehicle sales grew more rapidly in markets with lower fuel efficiency standards from 2010 to 2015.

"The current light vehicle fuel standards are improving the standard of new vehicles, but the rate of improvement is not enough to meet long-term standards," the iea warned.

In addition, barclays reports that Europe's demand for natural gas as a source of power will not increase as electric vehicles become more popular.

In continental Europe, demand for natural gas peaked in 2010 and then declined, only to pick up when coal was more expensive than coal.

Separately, electric vehicles accounted for about 1.5 per cent of all new car registrations in Europe last year.