A sharp shift to electric vehicles (EVs) across countries could wipe out up to 3.5 million barrels/day of oil demand for cars by 2025, a quantity roughly equal to Iran’s current daily production, Barclay’s said in a report.
If electric vehicles grow to a third of the car market crude oil consumption could fall by as much as 9 million barrels/day – about 90 percent of Saudi Arabia’s daily output, it forecast.
According to OPEC, global oil consumption this year will reach 96.8 million barrels/day.
Fast-growing economies such as China and India are increasingly rooting for zero-emission EVs as concerns rise over fossil fuels and pollution.
An Indian government recently ordered 10,000 EVs as part of a programme to boost renewable energy in the country. Developed nations such as France, Germany and the United Kingdom has set timelines to changeover to electric or hybrid vehicles, raising concerns in oil-producing nations.
Barclays did point to several barriers to adoption of EVs such price, battery life and the industry’s inability to produce more than a certain number.
Global sales of EVs rose by 40 percent last year, according to the International Energy Agency, but the roughly 2 million electric vehicles on the road still account for less than 0.2 percent of the global fleet of light vehicles.
Electric vehicles accounted for about 1.5 percent of all new car registrations in Europe last year, according to OPEC.