Has the World Reached Peak Oil Demand?
June 3, 2020—There's no shortage of prognostications about how and when the majority of drivers will turn to electric vehicles. But one important aspect to keep in mind is that the topic is intrinsically linked to the slowing of the oil industry.
One recent report in Reuters explores what peak oil demand looks like—and whether or not we're reached it. In addition to environmental concerns propelling a move away from gasoline vehicles, energy companies are having tough economic times of their own. A shorter supply and rising prices in the future could accelerate change.
An expert cited in the Reuters report said that global oil demand is just over 100 million barrels per day. That expert predicted a peak to come at up to 107 million barrels per day around 2027 or 2028. That prediction is a moving target, however, as many forces move against oil companies.
"Although the oil industry hopes to offset demand lost to EVs with a growing appetite for crude to make petrochemicals and plastics, companies facing growing pressure from investors over climate change are increasingly open about the risks," according to the Reuters report.