Electric Vehicles and China's Green Revolution Disrupt Global Oil Market

The shift towards electric vehicles, particularly in China, is reshaping the global oil market. The International Energy Agency reports that EVs account for 40% of car sales in China and 20% globally, potentially reducing oil demand by 6 million barrels per day by 2030, while clean energy demand rises.

The International Energy Agency's recent report highlights a transformative trend: the surge in electric vehicle (EV) adoption, predominantly driven by China, is poised to disrupt the global oil landscape. With China accounting for 40% of global EV sales and a projected 70% by 2030, major oil producers are feeling the pressure.

The World Energy Outlook 2024 outlines how EVs are set to displace up to 6 million barrels per day of oil demand by 2030. Parallelly, China's ongoing investment in wind and solar power dovetails with its climate targets, but the growth in overall electricity demand, partly fueled by coal, remains a challenge.

The increase in clean energy capacity, coupled with shifting industrial and consumer power needs, signals a peak in fossil fuel demand within the decade. Notably, India emerges as an alternative market for oil companies, potentially offsetting declining growth elsewhere. However, experts stress urgent action is vital to align with net-zero goals and avert severe climate consequences.

(With inputs from agencies.)