U.K.-based Wood Mackenzie said it expected the take-up of electric vehicles to cut gasoline demand significantly, particularly beyond 2025 as the battery-powered cars go mainstream.
Combined with car manufacturers forced by regulations to produce models that run further on the same amount of oil, a new report by the analysts suggests global gasoline demand is likely to peak by 2030.
The U.K. and France have recently said they will phase out sales of new petrol and diesel cars by 2040. China, the world’s biggest car market, is mulling a similar move, which would have a significant impact on oil demand.
Of the 96m barrels of oil consumed globally each day, 60m are used for transport, which Wood Mackenzie predicts will stall by 2030.
Alan Gelder, a senior analyst at Wood Mackenzie, said the ripples of gasoline’s plateau would be felt much earlier, as oil companies put off investment in refineries and the number of petrol stations is reduced.
Enjoy curated articles directly to your inbox.