The number of electric cars in the future will skyrocket and the use of gasoline and diesel should end in most companies by 2050
The whole world is investing more and more in clean energy, with electric vehicles as one of the engines of this market. However, with cars moving away from gasoline for good over the next 20 to 30 years, should the global oil market be concerned?
Honda announced that it intends to sell only electric cars in 2040, ending its gasoline-powered vehicles once and for all. Other companies in the sector have also declared that they will do the same thing. In addition, some governments also make projections to prohibit the circulation of gasoline-powered vehicles.
However, experts point out that the growth of the electric vehicle market is not necessarily a bad thing for oil. the market of amenities has experienced strong growth with the increase the search for copper, platinum and palladium.
The electric car market grew by 41% in 2020, reveals a report by the International Energy Agency. These numbers will continue to grow over the next decade.
Recently, US President Joe Biden proposed an investment of 174 billion dollars in electric vehicles. This is still a study of increased credit for producing firms.
Lithium has become fundamental for the manufacture of electric car batteries. Last year alone, the metal had an increase of 41%. For the next 5 years, a 300% increase in the value of the metal is expected.
Electric Vehicle Growth Threatens Oil?
A report from the IHS showed that only 0,4% of all global road transport is powered by electricity, with most of that – around 75% – in the Chinese market. The amount is small, but it has increased threefold in the last decade.
The oil cares only about how much oil demand is replaced by electricity. In 2020, for example, there were 9,2 million electric vehicles and 20.000 powered by fuel cells on the market. Together, these vehicles account for only 0,2% of world oil consumption. If you add electric buses and other electric two-wheelers, the number rises to 0,4% in 2020.
By 2025, with all the prospect of growth in sales of electric vehicles, it is estimated that what these vehicles will no longer consume from oil is equivalent to 1,4%.
Oil at a disadvantage
Alternative energy sources have a great advantage over oil. Investments in the sector will be trillions in the coming decades, in addition to having a lot of political and social support in favor of the environment.
The advance of electric cars, for now, does not generate concern in the global oil market: “iInvariably, some of them may penetrate the market and continue to eat up the traditional market share for liquid fuels.'', declared Dean Foreman of the American Petroleum Institute. Even with the growth of the sector in the coming years, this is not a concern: “It is clear that the primary energy sources for transportation will continue to be natural gas and oil.'' concluded Foreman.
