Hard times are ahead for the oil industry, the International Energy Agency warns. The growing popularity of electric vehicles presents a threat to global oil consumption. Experts assume that the world economy could come under pressure from a significant decline in oil demand as more countries and consumers embrace battery-powered cars.
According to IEA estimates, sales of electric cars are expected to surge this year, which in turn could dampen oil demand.
Among the key factors contributing to EV sales growth are the availability of this mode of transportation and the development of charging infrastructure. Preliminary estimates show that worldwide sales of electric cars will reach 17 million units this year, compared to about 14 million electric vehicles in 2023. At the same time, more than 20% of innovative cars will run on electricity. In 2024, the market share of electric cars could reach up to an impressive 50% in China, 25% in Europe, and 11% in the United States.
Analysts agree that a meteoric rise in electric cars is curbing oil demand. Experts predict that transport fuel demand will peak in 2025 before shedding 6 million barrels per day by 2030 and 11 million barrels per day by 2035. This would mark an unprecedented 10% drop in global oil consumption, the IEA estimated.
