Electric vehicle sales are growing faster than expected around the world, and sales of gas- and diesel-powered vehicles have been falling. Yet, the U.S. government still forecasts an increasing demand for oil, and the oil industry is doubling down on production plans.
Why is that, and what happens if the U.S. projections for growing oil demand are wrong?
On Sept. 12, 2023, Fatih Birol, director of the International Energy Agency, an intergovernmental organization that advises the world’s major economies, drew global attention when he wrote in the Financial Times that the IEA is now projecting a global peak in demand for oil, gas and coal by 2030.
The new date was a significant leap forward in time compared with previous estimates that the peak would not be until the 2030s for oil and even later for gas. It also stood out because the IEA has typically been quite conservative in modeling changes to the global energy system.
Birol pointed to changes in energy policies and a faster-than-expected rise in clean technologies – including electric vehicles – along with Europe’s shift away from fossil fuels amid Russia’s war in Ukraine as the primary reasons. He wrote that the IEA’s upcoming World Energy Outlook “shows the world is on the cusp of a historic turning point.”
Electric vehicle sales are growing faster than expected around the world, and sales of gas- and diesel-powered vehicles have been falling. Yet, the U.S. government still forecasts an increasing demand for oil, and the oil industry is doubling down on production plans.
Why is that, and what happens if the U.S. projections for growing oil demand are wrong?
On Sept. 12, 2023, Fatih Birol, director of the International Energy Agency, an intergovernmental organization that advises the world’s major economies, drew global attention when he wrote in the Financial Times that the IEA is now projecting a global peak in demand for oil, gas and coal by 2030.
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