The auto industry is undergoing a radical change now and Large Oil it may start to feel like a housekeeping very soon. THE COVID-19 pandemic caused global oil demand to plummet, as well as the EV era It’s starting. THE International Energy Agency now predictions this demand may never recover.
To be more specific, it is the demand for Gasoline that may have peaked. You may not recover. Gasoline consumption fell 11 percent last year due to the pandemic, according to the New York Times. The blockages and restrictions took many people into the house and this explains so much lower gasoline consumption and slightly lower emissions.
Gas consumption It is constantly recovering, however. The difference is that there seems to be a new ceiling for what the IEA expects to be around 2023, as the NYT Details:
The agency said gasoline consumption is expected to increase sharply in emerging markets like China and India in the coming years, but that from 2023 it will likely decline in large industrialized economies.
Take this for a moment. Only two years to go. I had projects that I have been postponing for the longest time.
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Big Oil will live to fight another day, however, as the demand for crude oil is yet to recover. IEA credits the petrochemical sector to increase demand, but make a reservation for gasoline:
The petrochemical industry will continue to lead the growth in demand, with ethane, LPG and naphtha together accounting for 70% of the expected increase in demand for oil products by 2026. Demand for gasoline may have peaked, however, as Efficiency gains and the move to electric vehicles offset growth in mobility in emerging and developing economies.
Later, the IEA’s report notes specifically that these new forecasts are linked to changing consumption habits after the pandemic. Once again, the pandemic simply seems to have pushed us in the direction we had established, and although we can always go back to our old habits, there are signs that things are changing. Those ones to alter may be here to stay.