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Electric cars may reduce global demand for oil by mid-2020s

The peak of oil consumption by road transport is likely to be achieved by the middle of 2020

© Mikhail Pochuev/TASS

MOSCOW, February 16. /TASS/. The emergence of electric cars can lead to a reduction of oil consumption by road transport by the mid-2020s, the Russian Central Bank said in its report.

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Putin urges Russian car owners to go green

According to the Central Bank, the speed of the development of the electric vehicle market and the rate of growth of the efficiency of fuel consumption will greatly influence the dynamics of oil consumption by road transport.

"With a wide spread of scenario estimates, the peak of oil consumption by road transport is likely to be achieved by the middle of 2020. With a high rate of growth of the efficiency of fuel consumption or the rapid development of the electric vehicle market in the coming years, this can have a significant negative impact on oil prices," the regulator said.

Nevertheless, in relation to oil, in addition to motor transport, according to the Central Bank, 11% of the aggregate demand accounts for air and sea freight, on the part of which consumption growth, according to various estimates, will continue. In the remaining 45% of world consumption, the Central Bank noted consumption of petrochemicals, which should also continue to grow.

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