//Electric Cars Won’t End Oil

Electric Cars Won’t End Oil

Can Electric Cars Kill Crude Oil Demand?

By: Vinni Malik, Publicis Sapient (Energyworld.com, from The Economic Times)

On my recent trip to North America, I was congratulating a friend who had bought a luxury car when he told me that he thought of buying it now as he wasn’t sure if it would make sense in a few years once the electric cars take over. His comment triggered a chain of thoughts in my head and a few questions. Electric cars are a thing of the future (or maybe present) but what happens to the crude oil demand in an all-electric car future? Will crude consumption die out? Or peak out? And when?

Crude oil consumption is expected to be a little over 100 million barrels per day (b/d) by the end of 2019 as compared to about 86 million b/d in 2010. An average 1.5 million b/d increase every year since 2010. Simple math would suggest the expected consumption to be about 147 million b/d by 2050. But factoring in the policies that the governments have and the targets that are in place for consuming renewables, switching to electric vehicles, increased energy efficiency, etc, the 147 million b/d should be much lesser. Right? But, how much? more…

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