Global oil demand to peak in 2023: DNV GL report

Global oil demand will peak in 2023 as electric vehicles (EVs) become competitive with combustion engine cars, according to a new report by energy and maritime services company DNV GL.

In its 2018 Energy Transition Outlook, DNV forecast that EVs will account for half of all new light-duty vehicles sold in the world, and 10 years later half of all light and heavy road transport will be electric.

As a result, the Norway-headquartered firm believe that that no new oil developments will likely be needed by 2040, and in 2050 oil demand is expected to drop to around half of its peak level.

“Amid declining consumption in the future, we see little scope for adding capacity in high-cost areas, such as in the Arctic,” said DNV.

The report also predicts that demand for natural gas will grow until the mid-2030s with global upstream gas capital expenditure rising from US$960 billion in 2015 to a peak of $1.13 trillion in 2025.

However, the group warned that regional and national governments are still not on track to meet climate goals, with the world likely to warm 2.6 degrees Celsius, 0.6 degrees above the level scientists propose would cause catastrophic climate damage.