Daily Energy Report
India’s EV impact on oil demand, EIA inventories, US Permian frenzy & production, Asian LNG re-export, OPEC+ cut decision, China Rare Earth growth, and more.
Chart of the Day: The Impact of Electric Vehicles on India’s Oil Demand
Figure (1) above shows IEA’s estimates of oil demand in India between 2024 and 2030. It shows what demand would be without electric vehicles, improvement in fuel economy in ICE vehicles and biofuel. In other words, it shows how much oil demand would decline because of these factors. The IEA estimates that demand avoided because of these three factors will be around 480 kb/d.
The Figure shows a continuous increase in demand, even after counting for all these factors.
EOA’s Main Takeaways
Despite all efforts to increase the number of electric vehicles, improve fuel economy, and the use of biofuel, oil demand in India is expected to grow by more than 1 mb/d by 2030, according to the IEA. This is a significant conclusion that many supporters of EVs do not want to acknowledge.