Coal News We love to talk!

NOV 15 2017

Electrical vehicles will reduce demand for oil worldwide: Rystad

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 15th NOV 2017

 

The penetration of electrical vehicles (EV) is set to grow in the coming years and may reduce the growth in global oil demand, according to Rystad Energy at a seminar on India's challenges to achieve energy security held recently at the Norwegian Embassy.

Rystad Energy is an independent oil and gas consulting service and business intelligence data firm offering global databases, strategy consulting and research products. The firm recently established offices in Bangalore.

According to the firm, the sales of light duty vehicles will constitute 40 percent of global growth in oil demand. If these sales are partly replaced by electrical vehicles, the demand for oil will be drastically reduced. Aviation, maritime sectors, petrochemicals, building and agriculture are also expected to drive the demand for oil going forward. However, the growth in demand driven by these sectors will not make up for the impact of electrical vehicles. In fact, a peak oil demand scenario could happen in the beginning of the 2030s.

Rystad Energy also made the case that natural gas has an important part to play in India's future energy mix. Considering the reduced greenhouse gas emissions from natural gas compared to coal, it could also play a crucial part in reaching the Indian pledge under the Paris Agreement.

Tripling the use of natural gas would reduce demand for coal by 25%. Increased renewable energy generation could also reduce coal demand by 25%. Together, these two factors could limit Indian emissions in 2021 to 3,1 gigatons of CO2, well within the limits of Carbon Tracker's suggested country quota of 4 gigatons.

In Norway, government policies has led to a more EVs being sold. More than 29 percent of all new cars sold in Norway are now electric. The Norwegian policies include removing the sales tax which lowers the price, permission to drive in the bus land which shortens the time spent commuting to work and free parking privileges in city centers.

Meanwhile, the Indian government has set the target of all vehicles sold to be electric by 2030. If this ambitious goal is met, India will be in a good position to curb the growth in greenhouse gas emissions from the transport sector and reduce their dependence on foreign oil.

Tags

Renewable Energy Coal Gas Natural Gas Oil Energy Security Energy Bangalore Oil Demand Tax Oil and Gas India

Related News

  • No firm commitment by Govt to boost renewable energy, says MPs group  Read more
  • MNRE, World Bank review solar parks progress  Read more
  • Electric vehicles not to be a gamechanger for global oil demand: BP  Read more
  • String of upgrades buoy RIL share price  Read more
  • Government approves payment of Rs 216 crore to lenders of cancelled coal blocks  Read more
  • Undersea pipeline from Iran can bring cheaper gas to India: TNR Rao  Read more
  • Adani's 600-MW Chhattisgarh plant delayed on public opposition  Read more
  • Centre's biodiesel plan fails to fuel hopes  Read more
  • Goa Medial College spent Rs 2.2 crore extra on power bills: CAG  Read more
  • On clean energy, India has wind at its back, sun ahead  Read more