The car industry is currently going through a sea change and Large oil may soon start to feel like a storage space. The COVID-19 pandemic has reduced global demand for oil just like the EV era is in progress. The International Energy Agency now predictions that question may never recover.
To be more specific, it is the demand for petrol which may have reached a peak. It may not recover. Gasoline consumption fell by 11 percent last year due to the pandemic New York Times. The closures and restrictions have driven many people indoors, and so much throughout lower petrol consumption and slightly lower emissions.
Gas consumption is but persistently recovering. The difference is that there seems to be a new ceiling for it that the IEA predicts to be around 2023, as the NEW details:
The agency said that consumption is expected to increase sharply in emerging markets such as China and India in the next few years, but that it is likely to decline in the large industrialized economies from 2023 onwards.
Take it in for a moment. It’s just two years away. I have had projects longer than projects.
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However, Big Oil will be able to fight another day, as demand for crude oil is expected to continue to recover. The IEA credits the petrochemical sector for the increase in demand, but it make a reservation for petrol:
The petrochemical industry will continue to lead the growth in demand, with ethane, VPG and naphtha together accounting for 70% of the projected increase in demand for oil products by 2026. The demand for petrol may have peaked, however, as the increase in efficiency and the shift to electric vehicles have been offset. mobility growth in emerging and developing economies.
Later the IEAs report specifically notes that these new forecasts are linked to changing consumer habits in the wake of the pandemic. Again, it seems like the pandemic has simply moved us in one direction, and although we have always been able to go back to our old ways, there are signs that things change. Those changes can be here to stay.