Russia’s ongoing aggression in Ukraine has led to international sanctions blocking the country’s oil exports, leading to fears of rising gas prices. But the adoption of electric vehicles is helping to make the situation less dire.
Plug-in vehicles avoided about 1.5 million barrels of oil per day last year, according to a new analysis by Bloomberg New Energy Finance. That’s about one-fifth of Russia’s pre-invasion oil exports, according to Bloomberg NEF.
According to the analysis, oil consumption avoided by EVs has also doubled since 2015, to about 3% of world demand.
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Although electric cars attract the most attention, the analysis shows that other vehicles are responsible for the most oil avoidance. According to the Bloomberg NEF, electric two- and three-wheeled vehicles জনপ্রিয় popular in Asia দ accounted for 67% of the avoidance of oil demand in 2021.
These vehicles had an impact on oil demand. Next in line was the electric bus, which accounted for 16% of the demand for skipped fuel, followed by 13% for passenger vehicles. Bloomberg NEF noted that the second is the fastest growing segment.
Although the demand for displacement oil is still a small fraction of the total global market, this analysis is consistent with research firm Wood McKenzie’s 2017 prediction that EVs could be a significant disruptor. Other analyzes have predicted that EVs could eventually deplete Big Oil’s strength.
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Although it is important to keep these analyzes in context. Although the transfer to EV has progressed steadily, emissions reduction has not necessarily slowed down as quickly as projected. A 2021 International Energy Agency report found that emissions from EVs have been reduced by emissions added from transfers to SUVs.
And when EVs break the oil industry’s monopoly on transportation power, they may not crash oil prices. As research firm Navigant noted in 2016, the relationship between the trend in the auto industry and oil prices has expanded beyond EVs for a number of reasons – from strict fuel-efficiency standards for petrol vehicles to emerging technologies such as autonomous driving. All of them must be considered to get a complete picture.