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How EV Adoption Will Impact Oil
Consumption (2015-2025P)
May 11, 2023
By Selin Oguz
The EV Impact on Oil Consumption
As the world moves towards the electrification of the transportation
sector, demand for oil will be replaced by demand for electricity.
To highlight the EV impact on oil consumption, the
above infographic shows how much oil has been and will be saved every
day between 2015 and 2025 by various types of electric vehicles,
according to BloombergNEF.
How Much Oil Do Electric Vehicles Save?
A standard combustion engine passenger vehicle in the
U.S. uses about 10
barrels of oil equivalent (BOE) per year. A
motorcycle uses 1, a Class 8 truck about 244, and a bus uses more than
276 BOEs per year.
When these vehicles become electrified, the oil their combustion
engine counterparts would have used is no
longer needed, displacing oil demand with electricity.
Since 2015, two and three-wheeled vehicles, such as
mopeds, scooters, and motorcycles, have accounted for most of the oil
saved from EVs on a global scale. With a wide adoption in Asia
specifically, these vehicles displaced the demand for almost 675,000
barrels of oil per day in 2015. By 2021, this number had quickly grown
to 1
million barrels per day.
Let’s take a look at the daily displacement of oil demand by EV
segment.
| |
Number of barrels saved per
day, 2015 |
Number of barrels saved per day, 2025P |
|
Electric Passenger Vehicles |
8,600 |
886,700 |
|
Electric Commercial Vehicles |
0 |
145,000 |
|
Electric Buses |
43,100 |
333,800 |
|
Electric Two & Three-Wheelers |
674,300 |
1,100,000 |
|
Total Oil Barrels Per Day |
726,000 |
2,465,500 |
Today, while work is being done in the commercial vehicle segment,
very few large trucks on the road are electric—however, this is
expected to change by 2025.
Meanwile, electric
passenger vehicles have shown the biggest
growth in adoption since 2015.
In 2022, the electric car market experienced
exponential growth, with sales exceeding 10
million cars. The market is expected to
continue its strong growth throughout 2023 and beyond, eventually
coming to save a predicted 886,700
barrels of oil per day in 2025.
From Gas to Electric
While the world shifts from fossil fuels to
electricity, BloombergNEF predicts that
the decline in oil demand does not necessarily equate to a drop in oil
prices.
In the event that investments in new supply capacity decrease more
rapidly than demand, oil prices could still remain unstable and high.
The shift toward electrification, however, will likely have other
implications.
While most of us associate electric vehicles with lower
emissions, it’s good to consider that they are only as sustainable as
the electricity used to charge them. The shift toward electrification,
then, presents an incredible opportunity to meet the growing demand
for electricity with clean
energy sources, such as wind, solar and
nuclear power.
The shift away from fossil fuels in road transport will
also require expanded infrastructure. EV
charging stations, expanded transmission
capacity, and battery storage will likely all be key to supporting the
wide-scale transition from gas to electricity.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com
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