China’s rapidly growing fleet of electric buses could be the biggest existential threat to oil demand in the future as more and more vehicles shun fossil fuels.
A new report from Bloomberg New Energy Finance suggests that China’s electric-bus revolution could kill off oil demand in the future with 6.4 million barrels a day displaced by electric vehicles by 2040.
By the end of 2019, a cumulative 270,000 barrels a day of diesel demand, predominantly from China, will be removed from the market. China’s revolution in electric vehicles has been astonishing and looks set to continue into the future. For example, in the growing mega city of Shenzen, the entire 16,000 strong fleet of buses run on electric engines and taxis will soon follow suit.
Bloomberg estimates that electric buses and cars collectively account for 3% of global oil demand growth since 2011. The market is still small, making up around 0.3% of current consumption, but is set to expand rapidly in the coming years.
Global energy demand is still growing despite the boom in electric vehicles, with the US set to become the world’s largest oil exporter in the coming years.
A number of American cities and universities, such as the University of Utah, have unveiled electric-bus fleets in recent years. And in 2017, 12 major global cities agreed to buy only all-electric buses starting in 2025, according to Electrek.
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