Electric cars estimated to reduce oil demand by nearly 3.8 million barrels per day by 2025
Barclays commodities analysts have estimated that oil consummation will take major dive in the coming years due to the proliferation of electric and increasingly fuel efficient vehicles. A research note released on Wednesday estimated that there will be a decrease in at least 3.5 million barrels a day by 2025 as a direct result of these new automotive trends. That’s the rough equivalent of Iran’s daily output of 3.8 million barrels a day.
Some industry insiders and futurists are predicting that electric vehicles will make up one-third of the car market by 2040- in that event it would result in a demand reduction of 9 million barrels a day. That is equal to nearly 90 percent of Saudi Arabia’s daily output.
Exacerbating this trend is the world’s top automotive markets which have proposed banning or reducing the use of traditional fossil fuel burning vehicles. This includes European giants such as France, Germany, and the UK, in addition to top growth markets such as China and India.
At least one lawmaker in California, San Francisco Democrat Phil Ting, has plans to introduce a bill that would [read more]