New Delhi: The penetration of electrical vehicles (EV) is set to grow in the coming years and may reduce the growth in global oil demand, according to Rystad Energy at a seminar on India’s challenges to achieve energy security held recently at the Norwegian Embassy.
Rystad Energy is an independent oil and gas consulting service and business intelligence data firm offering global databases, strategy consulting and research products. The firm recently established offices in Bangalore.
According to the firm, the sales of light duty vehicles will constitute 40 percent of global growth in oil demand. If these sales are partly replaced by electrical vehicles, the demand for oil will be drastically reduced. Aviation, maritime sectors, petrochemicals, building and agriculture are also expected to drive the demand for oil going forward. However, the growth in demand driven by these sectors will not make up for the impact of electrical vehicles. In fact, a peak oil demand scenario could happen in the beginning of the 2030s.