Shift toward EVs, particularly in China, could disrupt global oil market, energy report says
electric vehicles globally, especially in China, is poised to disrupt the global oil market, according to a report released Wednesday by the International Energy Agency. In recent years, China has accounted for most of the growth in oil demand and planet-heating emissions, but electric vehicles now make up 40% of new sales of cars there, and 20% of sales globally, putting major oil and gas producers «in a bind.»
The IEA World Energy Outlook 2024 outlines a future where EV adoption continues to gain momentum, potentially displacing up to 6 million barrels per day of oil demand by 2030. The agency said based on current trends and policies and the availability of materials, EV will reach 50% of global car sales in 2030.
China already accounts for half the world's electric cars on the road. By 2030, it's projected that 70% of new car sales in China will be electric. With its massive additions of new wind and solar power, China is aligned with its target for addressing climate change, seeing emissions peak and begin to decline by the end of the decade.
The clean energy expansion, however, is happening alongside a rise in demand for electricity, including power produced by burning coal, according to the IEA. «This has meant that even as we saw record growth in clean energy installations and additions, emissions kept increasing,» said Lauri Myllyvirta, lead analyst at the think tank Centre for Research on Energy and Clean Air.
Electricity demand is growing even faster than expected, «driven by light industrial
