International Energy Agency says gasoline use will peak soon

Illustration for the article titled Gasoline Demand is About to Peak: Report

Photo: Getty (fake images)

The automotive industry is undergoing a sea change right now and Big oil you could start feeling like a stowaway very soon. the COVID-19 The pandemic has caused global demand for oil to plummet just as Era of electric vehicles is getting underway. the International Energy Agency now forecasts that demand may never recover.

To be more specific, it is the demand for gasoline that may have reached a peak. It may not recover. Gasoline consumption fell 11 percent last year due to the pandemic, according to the New York Times. The closures and restrictions brought a lot of people inside and that huge amount of suspicion lower gasoline consumption Y slightly lower emissions.

Gas consumption is constantly recovering, however. The difference is that there appears to be a new ceiling that the IEA predicts will be around 2023, as the NYT details:

The agency said gasoline consumption was expected to rise sharply in emerging markets such as China and India in the coming years, but that starting in 2023 it will likely decline in large industrialized economies.

Take that for a moment. Only two years to go. I’ve had projects that I’ve been putting off for longer.

Illustration for the article titled Gasoline Demand is About to Peak: Report

Photo: Getty (fake images)

However, Big Oil will live to fight another day as demand for crude is expected to rebound. The IEA credits the petrochemical sector due to the increase in demand, but makes a warning for gasoline:

The petrochemical industry will continue to lead demand growth, with ethane, LPG and naphtha together accounting for 70% of the projected increase in demand for petroleum products by 2026. However, gasoline demand may have peaked , as efficiency gains and the shift to electric vehicles offset mobility growth in emerging and developing economies.

Later, the IEA report specifically notes that these new forecasts are linked to changes in consumer habits in the wake of the pandemic. Once again, the pandemic simply seems to have pushed us in the direction that we had started, and while we could always go back to our old ways, there are signs that things are changing. Those changes may be here to stay.


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