A recent study conducted by Morgan Stanley has revealed an intriguing dichotomy between the rising demand for electric vehicles (EVs) and the continued growth in global demand for petrol and diesel. Contrary to expectations, despite the surge in EV purchases around the world, the consumption of oil shows no signs of decline.
The study predicts that sales of fossil fuels will reach an all-time high in 2023, with a projected growth of nearly 40%. This astonishing statistic counteracts the increasing prevalence of battery electric vehicles, which are projected to account for over 10% of global automobile sales. Despite the popularity of EVs, they have not managed to curb the demand for petrol and diesel on a global scale.
Even in countries with high electric vehicle penetration rates, such as Norway and China, the demand for oil remains robust. Norway, known for its progressive approach to electric mobility, sees electric vehicles constituting 80% of new passenger vehicle sales. However, this has not resulted in a collapse in oil demand within the country. Similarly, China, the largest EV market, has witnessed a surge in oil demand by 50% alongside its increasing EV penetration, surpassing 20%.
The study emphasizes that the transition to new energy sources takes time and that new technologies require decades to achieve dominance. Currently, fossil fuels account for more than 80% of primary energy consumption in the transport sector, while solar and wind energy make up just over 5%. Gradual shifts are expected as governments worldwide implement policies that promote a transition to net-zero emissions and the adoption of cost-efficient renewable energy sources.
1. Has the demand for petrol and diesel declined despite the rise in electric vehicle sales?
– No, according to the study by Morgan Stanley, the demand for petrol and diesel has not declined globally, despite the surge in electric vehicle sales.
2. Which country has the highest electric vehicle penetration rate?
– Norway boasts the highest electric vehicle penetration rate globally, with electric vehicles comprising 80% of new passenger vehicle sales.
3. Is China the largest electric vehicle market?
– Yes, China is recognized as the largest electric vehicle market in the world.
4. What drives future oil demand according to the International Energy Agency (IEA)?
– The report cites the IEA’s projection that the petrochemical sector will be the primary driver of future oil demand.
5. Are government policies promoting a shift towards renewable energies expected to alter the balance gradually?
– Yes, the study suggests that government policies promoting a shift toward net-zero emissions and the adoption of cost-efficient renewable energies will gradually alter the current balance between fossil fuels and renewable sources.