Russia’s current invasion of Ukraine has led to international sanctions that are holding back oil exports from the country, leading to fears of rising gas prices. But the adoption of electric cars has helped make the situation less bleak.
According to a new analysis from Bloomberg New Energy Finance. This is about one-fifth of Russia’s oil exports before the invasion, according to Bloomberg NEF.
According to the analysis, the consumption of oil, which is avoided by electric cars, has also doubled since 2015 and amounted to about 3% of global demand.
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While electric cars tend to attract a lot of attention, the analysis found that other types of vehicles accounted for the most oil avoidance. According to Bloomberg NEF, electric two- and three-wheeled vehicles, which are typically popular in Asia, accounted for 67% of oil demand, which in 2021 was avoided.
These cars have greatly affected the demand for oil. Next in the ranking were electric buses, which accounted for 16% of eliminated demand for oil, in second place – passenger cars – 13%. The latter were the fastest growing segment, noted in Bloomberg NEF.
While the amount of shifted demand for oil is still a small share of the global market, this analysis is in line with the forecasts of research firm Wood Mackenzie for 2017. Electric cars can be a significant destroyer. Another analysis also predicted that eventually electric cars could thwart the power of the Great Oil.
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However, it is important to put these analyzes in context. Although the transition to electric vehicles is stable, emission reductions have not necessarily fallen as fast as projected. The International Energy Agency’s 2021 report found that EV emission reductions have been offset by additional emissions. from a change to SUV.
And while electric transporters are violating the oil industry’s monopoly on transportation, they can’t lead to falling oil prices. As noted in 2016 by research firm Navigant, the link between automotive trends and oil prices extends to a number of factors that are not included in the EV – from stricter fuel efficiency standards for gasoline cars to new technologies such as autonomous driving. You need to consider everything to get the full picture.