Oil Shocks Fuel Electric Vehicle Boom
A recent report from Wood Mackenzie suggests that oil supply disruptions and high fuel prices could accelerate electric vehicle adoption, leading to lower global oil consumption by 2040.
The report notes that wars affecting oil-producing Russia and Iran have exposed governments and consumers to higher fuel prices and supply risks, creating an incentive to invest in EV manufacturing and supply chains.
Wood Mackenzie also points out that technology is advancing rapidly, with China making progress on five-minute charging and sodium-ion batteries. Western governments may need to increase support for domestic EV technology or license more Chinese tech to keep pace.
The report predicts that global oil consumption could fall to 99 million barrels per day by 2040, down from over 100 million bpd today.