Surge in Electric Vehicles Sales Can Reshape Future Oil Demands for Conventional Vehicles

By Anshula Mandaokar , 25 October, 2023

The electrification in transportation will help the environment to build up more sustainable growth, which was difficult with the conventional mode of vehicles. The rise in electric vehicle demand also makes a difference in the oil demand for traditional vehicles in 2023.

Surveys have shown that 2023 is expected to see 102 million barrels of oil consumption a day globally. Almost 50 percent of the oil consumption belongs to transportation by vehicles. The rise in electric vehicle production will mold the picture by replacing a portion of conventional cars in the automotive industry. Based on the survey reports, electric vehicles will achieve the target of displacing 20 million barrels of oil per day by 2040. The results also predicted that the fuel demand will surge by 2027 up to 49 barrels of oil per day, after which the fuel sector will see a sharp decline in consumption. The fuel consumption will fall by 35 barrels of oil per day by 2040. As per the data from the International Energy Agency (IEA), electric cars are expected to see exponential progress in sales of more than 14 million by the end of 2023. It represents a 35 percent year-over-year growth boost, with sales progressing in the second half of 2023. As per IEA data, the current trend of electric vehicles is expected to eliminate the need for 5 million barrels of oil per day by 2030.

Electrification in the automobile industry can help in attaining sustainability in the environment. Electric vehicles are the main factor in decarbonizing road transportation to restrict 15 percent of fuel emissions from conventional vehicles. The data estimated by IEA also shows that passenger electric cars will see a surge in sales in the near future.

Electric vehicle sales by region, 2022-2030