Global oil giant BP has produced a new report which shows that increased fuel-efficiency of traditional internal combustion engines for motor vehicles and a mass-market roll-out of battery-powered vehicles (BPVs) is likely to reduce both future demand for oil and C02 emissions.
In a recent speech, Spencer Dale, BP’s Chief Economist, said that BPVs are likely to increase rapidly over the over the next 20 years, with profound implications for society
They are likely to be integral to a mobility revolution – alongside autonomous driving, shared car-ownership and ride pooling – reshaping the relationship we have with our cars.
And they are likely to bring improvements to urban air quality, an issue that is likely to grow substantially in importance over the next 20-30 years as the number of people living in urban centres increase.
But Spencer also said that BPvs are not likely to be a game changer for the growth of oil demand over the next 20 years, during which time increasing prosperity in emerging Asia is likely to swamp the impact of even a very rapid rise in electric cars.
Indeed, improvements in the efficiency of oil-powered cars are likely to be many times more significant for dampening the growth in oil demand over the next 20 years than the emergence of EVs.
In that context, he also makes the point that there may be more effective methods of reducing CO2 emissions over this period, be it by encouraging greater improvements in vehicle efficiency or prompting a switch away from coal in the power sector.
Click here for a fully copy of the report: http://on.bp.com/2g1WQaU