Reply to Here's How EV Sales Are Affecting Oil Demand

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[quote=Anonymous][quote] Electric vehicles were expected to be the avatars of the global energy transition — vehicles so new, efficient and gleaming with advanced technology that consumers would turn away from fossil fuels and onto the life raft of climate activism without realizing they'd even taken the step.

That transition hasn't gone according to plan. High EV prices have made the conversion largely an elite game. That, in turn, helped make the energy transition a target for politicians. President Donald Trump pledged to build his presidency on a "drill, baby, drill" energy policy to lower oil prices and make America energy independent.

But the critical element needed to spur oil companies to drill is strong oil prices. Strong oil prices require either rising demand for oil or lower supplies. Rising sales of electric vehicles work against that scenario. Even the oil industry is tamping down expectations.

…
that EV and hybrid vehicle sales in China and the U.S. are now indisputably eating away at the growth in oil demand.

The important point to understand, says Enverus energy transition analyst Carson Kearl, "is that it's having an impact on demand growth more than it's having an impact on existing demand. You're not getting any of the growth that you would be getting if you didn't have EVs."
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Although EV sales have lagged some expectations, experts across the energy sector contend that EV and hybrid vehicle sales in China and the U.S. are now indisputably eating away at the growth in oil demand.

Overall U.S. sales of passenger cars and light trucks topped out in 2016. U.S. gasoline demand has now held well below its peak for more than five years. In China, demand for diesel hit its highest level in 2023. And many, including China's largest oil company, forecast the country's overall oil demand will peak by 2027. Does that mean oil stocks may also be at or near their peak?[/quote]
https://www.investors.com/news/oil-prices-trump-drill-baby-drill-evs-oil-stocks-demand/

Interesting times. So EVs are impacting the demand growth curve for oil. US may have reached peaked demand and China is or will hit peak demand in 2 years. Though the demand increase is falling quickly in China. [/quote]

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