In addition to revolutionizing the automotive sector, the move toward electric cars (EVs) is having a big effect on the world’s oil consumption. According to a new analysis by BloombergNEF (BNEF), the demand for road transportation is expected to drop by 4.1% in 2023 as a result of the estimated 1.8 million barrels of oil that electric and fuel-cell vehicles will prevent from being used.
This is a fantastic accomplishment that is not solely attributable to electric cars, despite common opinion. According to the research, two- and three-wheeled EVs will prevent a significant 60% of the world’s oil use by 2023, particularly in China, Southeast Asia, and India. Their wide fleets and quick adoption are key factors in reducing oil usage.
Surprisingly, passenger EVs overtook buses in 2022 as the second-largest source of avoided oil demand. In 2023, passenger EVs are anticipated to represent 23% of the total avoided oil demand, while buses and commercial vehicles contribute 13% and 3%, respectively.
The data indicates a substantial increase in avoided oil consumption, nearly two and a half times more from 2015 to 2023, demonstrating the accelerating pace of electric vehicle adoption globally.
BNEF’s projections are optimistic about the future. Under their base-case Economic Transition Scenario, EVs and fuel-cell vehicles are estimated to displace 12.4 million barrels of oil per day by 2035. The Net Zero Scenario, aiming for a zero-emission global vehicle fleet by mid-century, anticipates an additional 4 million barrels per day being displaced in 2035.
Aside from reducing oil dependence, the environmental benefits are significant. BNEF estimates that electric vehicles currently prevent 112 million metric tons of CO2 emissions annually. Even when factoring in emissions from additional electricity generation, the net reduction in emissions is commendable.
However, the report emphasizes that despite these achievements, the road ahead is long. The estimated avoided emissions for 2023 represent only about 2% of all emissions from road transport. The transition away from fossil-powered vehicles requires sustained efforts and support. The report concludes with a plea for reader support, underlining the importance of acknowledging and addressing the global impact of electric vehicles on oil consumption and emissions.