opec cars to drive oil demand growth
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Opec: Cars to drive oil demand growth

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Opec: Cars to drive oil demand growth

Opec expects the added vehicles in developing nations to create an additional 12.2 million
Abu Dhabi - Emirates Voice

The outlook looks bright for oil-producing nations and carmakers, Opec said Tuesday, as the group expects a surge in car ownership in the developing world to far outweigh the adoption of electric vehicles over the coming two decades.

In its annual look at long-term developments likely to affect the energy market, Opec said it expects growth in the global economy to be centred in developing nations, which will in turn spark a boom in car ownership.

The World Oil Outlook 2040 report estimates the size of the global economy to be 226 per cent that of 2016, with developing countries accounting for three-quarters of the growth.

With their increasing income, people in developing nations are expected to splurge on cars, tripling their number on the road in the region to 1.2 billion.

And while the Opec report expects electric vehicles to make inroads in the market, it doesn't expect them to drive out traditional internal combustion engines just yet. "It can be concluded that the velocity of technical advances has accelerated substantially with the introduction of (battery electric vehicles), which are now considered a serious alternative to traditional gasoline and diesel passenger cars."

However, Opec noted that advances in internal combustion engines has also made them more efficient.

"It is expected that gasoline engines will retain their economic advantage for the build-up of new fleets in developing countries, while diesel will remain the main mover for commercial vehicles," said the Opec report.

Opec expects the added vehicles in developing nations to create an additional 12.2 million barrels per day in oil demand.

That estimate takes into account increased efficiency measures and the adoption of electric vehicles in China and India. Otherwise, growth in oil demand would have been more than double.

In advanced economies that are members of the OECD club of nations the increasing adoption of electric vehicles and tighter efficiency regulations are expected to lead to a drop in demand by 7.2 million barrels per day.

The report doesn't see the days of diesel as being over quite yet, although the global scandal touched off by Volkswagen's forced admission in 2015 of rigging millions of its diesel vehicles to pass emissions tests has had an impact.

"The so-called 'diesel scandal' and its scars, together with a higher than previously expected penetration of electric vehicles (EVs), has resulted in a further downward revision for diesel/gasoil demand," said Opec.

However, Opec said it believes that technical solutions are possible that "will allow engine manufacturers to comply with strict regulations in view of gaseous, as well as particulate emissions" that are due to come into force as many nations try to clean up smog created by vehicles.

Overall, Opec forecasts demand for oil to increase to 111.1 million barrels per day in 2040, up from 95.4 million in 2015. That is up from the forecast of 109.4 million barrels per day in 2040 it made last year.

Fossil fuels are expected to still account for nearly three-quarters of energy production in 2040, despite the rapid growth of renewable energy sources.

An alternative scenario of rapid improvement in energy efficiency and adoption of electric vehicles would see oil demand peak sometime between 2035 and 2040.

Opec also sees US production of oil expanding at a faster pace in the medium term than it forecast last year, but output from fracking wells to peak in the late 2020s.

Source: Khaleej Times

 

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

opec cars to drive oil demand growth opec cars to drive oil demand growth

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

opec cars to drive oil demand growth opec cars to drive oil demand growth

 



GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 16:17 2018 Thursday ,30 August

Five Saudi women pilots granted GACA licences

GMT 05:38 2017 Tuesday ,05 September

Serious need for progress in the peace process

GMT 00:18 2017 Wednesday ,22 February

Mugabe marks 93rd birthday with faltering TV interview

GMT 12:48 2017 Tuesday ,09 May

King, Egyptian president hold talks

GMT 18:03 2017 Friday ,17 November

HH Sheikha Moza Witnesses Opening of 2017 WISE Summit

GMT 07:18 2017 Monday ,19 June

ARC Secretary General Najla Al Shamsi in Riyadh

GMT 08:18 2013 Thursday ,31 October

\'Early medication for HIV is cost-effective\'

GMT 19:23 2017 Monday ,23 January

80 Houthi Militants Killed in Airstrikes

GMT 22:44 2017 Friday ,21 July

HM King ratifies, issues 4 laws

GMT 13:34 2016 Saturday ,29 October

Biden ‘tops Clinton list for secretary of state’

GMT 20:00 2017 Saturday ,15 July

Bahrain condemns terrorist attack in Giza

GMT 09:20 2017 Wednesday ,05 July

Mohamed bin Zayed receives phone call

GMT 14:18 2012 Sunday ,13 May

Why some men hide in bathrooms

GMT 12:26 2012 Thursday ,28 June

Pakistan releases Indian spy

GMT 20:33 2013 Friday ,09 August

New menswear brand Pin Collar Shirts launches

GMT 13:43 2013 Wednesday ,06 November

Urban Retreat announces launch of debut skincare line

GMT 15:59 2017 Wednesday ,13 September

Nahyan bin Zayed, Abdullah bin Hamad offer condolences

GMT 09:47 2017 Wednesday ,29 November

UAE has what it takes to become the future capital

GMT 18:14 2017 Friday ,03 March

The Moroccan artist Hakim prepares new song
Emiratesvoice, emirates voice
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice