Russia’s continued invasion of Ukraine has triggered international sanctions aimed at restricting the country’s oil exports, leading to fears of soaring gas prices. But the adoption of electric vehicles has made the situation less dire.
According to new analysis from Bloomberg New Energy Finance. That’s about a fifth of Russia’s pre-invasion oil exports, according to Bloomberg NEF.
According to the analysis, oil use by avoidance of electric vehicles has also doubled since 2015, to around 3% of global demand.
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While electric cars tend to attract the most attention, the analysis shows that other types of vehicles account for the majority of oil avoidance. Electric two- and three-wheelers – which tend to be popular in Asia – account for 67% of restricted oil demand in 2021, according to Bloomberg NEF, according to Bloomberg NEF.
Those cars have had a big impact on oil demand. Followed by electric buses, which account for 16% of bypass oil demand, followed by passenger cars with 13%. Bloomberg NEF notes that the latter is the fastest-growing segment.
While the amount of replacement oil demand is still only a fraction of the total global market, this analysis is in line with a 2017 prediction by research firm Wood Mackenzie that EVs can be a significant disruption. Other analyzes also predict that EVs may eventually destroy the power of Big Oil.
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However, it is important to put these analyzes in context. While the transition to electric vehicles is steady, emissions reductions are not necessarily falling as quickly as expected. An International Energy Agency report for 2021 shows that the reduction in emissions from electric vehicles has been canceled due to additional emissions. from the transition to an SUV.
And while electric vehicles break the oil industry’s monopoly on providing transportation energy, they may not drive oil prices down. As research firm Navigant pointed out in 2016, the relationship between auto industry trends and oil prices extends to a number of factors beyond electric vehicles – from stricter fuel-economy standards to cars. gasoline cars to emerging technologies like autonomous driving. One has to consider all of them to get the full picture.