Oil Demand to Rise by 2040 Despite Electric Car Surge

Demand for oil will continue to increase in the coming decades despite a surge in electric vehicle (EV) sales, a new report from IHS Markit says.
Released on Tuesday (November 14), the report indicates that more than 80 percent of the vehicles sold worldwide in 2040 will still use some form of petroleum-fueled combustion engine, with oil remaining key in the space.
“Oil’s monopoly as a transport fuel will erode as a new era of multidimensional competition takes hold — but it will remain a major player,” said Jim Burkhard, vice president, global energy markets and mobility, at IHS Markit. “Many of its advantages as a fuel … will persist. And the size of the current automotive ecosystem will moderate the pace of change.”