Report: Electric Cars Will Cut Gas Demand by as Much as 20% in the Next 20 Years
A new report by energy consulting firm Wood Mackenzie has found that, depending on how thoroughly the drivers of the US adopt electric vehicles, demand for gasoline is expected to drop by at least 5% to as much as 20% in the next 20 years.
In terms of sheer numbers of gasoline barrels bought per day, the US currently uses more than nine million barrels of gasoline each day. If electric cars manage to reach 35% market shares by 2035, that number might be cut drastically down to two million barrels per day.
This report is more optimistic in favor of electric vehicles than other reports we have seen, although this may possibly be due to optimism generated by the strong response to the reveal of the Tesla Model 3 and the introduction this year of Chevy’s affordable long-range electric car, the Bolt. This is also interestingly optimistic given that low fuel prices and limited battery sizes have currently been keeping sales low.
On the other hand, automakers have been rapidly improving their electric vehicles, thanks in part to increasingly strict emissions rules in Europe, China, and the United States. Also, more and more automakers are building their own electric fleets.
All in all, this report seems to paint a fairly grave picture for the oil companies. However, the report predicted that, rather than disappearing, gas companies will simply shift production to delivering more natural gas to power companies that need to keep up with the increased demand for electricity.
News Source: Fortune