Is The Growth of The Electric Vehicle Market A Global Threat to Oil's Energy Hegemony?

Is The Growth of The Electric Vehicle Market A Global Threat to Oil’s Energy Hegemony?

Written by Fabio Lucas Carvalho

Published on 07/05/2021 at 10:45

Updated on 07/05/2021 at 10:49

Fonte: Pixabay

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The Number Of Electric Cars In The Future Will Surge And The Use Of Gasoline And Diesel Should End In Most Companies By 2050

The whole world is increasingly investing in clean energy, with electric vehicles being one of the engines of this market. However, with cars completely abandoning gasoline over the next 20 to 30 years, should the global oil market be concerned?

Honda announced that it intends to sell only electric cars by 2040, completely phasing out its gasoline-powered vehicles. Other companies in the sector have also declared that they will do the same. Additionally, some governments are already making projections to ban the circulation of gasoline-powered vehicles.

However, experts highlight that the growth of the electric vehicle market is not necessarily a bad thing for oil. The commodities market has been experiencing strong growth with the increase in demand for copper, platinum, and palladium.

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Does The Growth Of Electric Vehicles Threaten Oil?

A report from IHS showed that only 0.4% of all global road transport is powered by electricity, with the majority of this – about 75% – in the Chinese market. The amount is small, but it has tripled in the last decade.

The oil market is mainly concerned with how much oil demand is being replaced by electricity. In 2020, for example, there were 9.2 million electric vehicles and 20,000 powered by fuel cells in the market. Combined, these vehicles account for only 0.2% of global oil consumption. If electric buses and other electric two-wheel vehicles are included, the number rises to 0.4% in 2020.

By 2025, with the entire outlook for growth in electric vehicle sales, it is estimated that what these vehicles will stop consuming in oil will equate to 1.4%.

Oil At A Disadvantage

Alternative energy sources have a significant advantage over oil. Investments in the sector will be trillion-dollar in the coming decades, in addition to receiving substantial political and societal support for environmental preservation.

The advancement of electric cars, for now, does not generate concern in the global oil market: “inevitably, some of them may penetrate the market and continue to consume traditional market share for liquid fuels,” said Dean Foreman from the American Petroleum Institute. Even with sector growth in the coming years, this does not cause concern: “It is clear that the primary energy sources for transportation will continue to be natural gas and oil,” concluded Foreman.

Is The Growth of The Electric Vehicle Market A Global Threat to Oil’s Energy Hegemony?

The Number Of Electric Cars In The Future Will Surge And The Use Of Gasoline And Diesel Should End In Most Companies By 2050

Does The Growth Of Electric Vehicles Threaten Oil?

Oil At A Disadvantage

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Is The Growth of The Electric Vehicle Market A Global Threat to Oil’s Energy Hegemony?

The Number Of Electric Cars In The Future Will Surge And The Use Of Gasoline And Diesel Should End In Most Companies By 2050

Does The Growth Of Electric Vehicles Threaten Oil?

Oil At A Disadvantage

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

In the Saudi Arabian desert, the world’s largest green hydrogen plant is 80% complete and will use 4 gigawatts of solar and wind energy to produce 600 tons of clean fuel per day when it opens in 2027.

The CEO of Honor in Spain says that smartphones will change with AI, foldables, and even robot phones; the component crisis is making cheap models more expensive in 2026 and shifting the focus to premium.

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