Global Oil Demand Under Growing Threat From Electric Cars, Cleaner Fuel

Electric vehicles and more efficient fuel technology will cut transportation demand for oil by 2040 more than previously expected, but the world may still face a supply crunch without enough investment in new production, the International Energy Agency (IEA) said Nov. 13.

Oil demand is not expected to peak before 2040, the Paris-based IEA said in its 2018 World Energy Outlook.

The IEA’s central scenario is for demand to grow by about 1 million barrels per day (MMbbl/d) on average every year to 2025, before settling at a steadier rate of 250,000 bbl/d to 2040 when it will peak at 106.3 MMbbl/d.