Oil demand to peak in 2030s as EVs take over – BP report

BP has predicted that demand for oil will peak in the 2030s, with electric vehicles set to capture a third of the global car market by 2040.

The British oil major released its annual Energy Outlook, delivering numerous forecasts through 2040 including the arrival at a peak oil demand of 110 million barrels per day (bpd) by the mid-2030s.

Consumption will then begin to plateau and decline by 2040 and thereafter, meanwhile the global EV fleet will rise to 320 million by 2040. Today, there are roughly three million EVs on the road across the world.

The 320 million-strong EV fleet is a significant increase on last years prediction by the company, which had 100 million EVs on the road by 2035.

Along with its forecasts in the automobile market, the study also placed emphasis on future upheaval in the energy industry.

“Indeed, the continuing rapid growth of renewables is leading to the most diversified fuel mix ever seen,” said CEO Bob Dudley.

“Abundant and diversified energy supplies will make for a challenging marketplace. Don’t be fooled by the recent firming in oil prices: the focus on efficiency, reliability and capital discipline is here to stay.”