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Report: Fuel demand will peak in coming years


Syed Umarullah HussainiWeb Editor

28th Jun, 2020. 08:38 am
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Oil

As the ongoing pandemic continues to grip the business around the world, various studies and projections have been carried out regarding the fuel demand in the coming years.

According to the latest study, because of the crisis, companies around the world have one important matter to worry about and that is fuel demand.

It is projected that gasoline demand will peak in 2030, with diesel following three years later.

As a result, demand for crude oil from the road transport sector is seen spiking in 2031, at 47 million barrels daily.

This effect will likely be temporary; as lockdowns ease, demand for fuels begins to improve, even though it remains doubtful whether it will recover fully to pre-pandemic levels.

Fuel efficiency will improve so much that energy consumption in the transport sector will only rise by 20 percent by 2040.

Besides fuel efficiency, there are also alternatives to internal combustion engines, as well as ride-sharing services.

Last year, it was projected that the demand for oil from the transportation industry will peak before 2030.

Now, the industry has been hit hard by the coronavirus lockdowns—an unforeseen event that that all but shattered oil demand.

On the other hand, the report also highlighted another, yet important matter is that after the pandemic revealed how we could reduce CO2 emissions by staying at home, several international agencies are calling for a so-called green recovery, including the International Energy Agency.

The IEA wrote in a report last week that “The world has a “once-in-a-lifetime opportunity” to pour investment into clean energy and create millions of new jobs.”

The IEA has drafted a plan on how to take advantage of this opportunity and, unsurprisingly, transport reforms are a big part of this plan.

It was proposed that these should include financial incentives for drivers to switch from ICE cars to EVs or at least upgrade to more efficient ICE cars.

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