B of A Predicts Oil Demand to Peak in 2030
Bank of America Merrill Lynch analysts stated that in just twelve years, our society will reach the pinnacle of its love affair with oil.
The email supports this claim utilizing a simple supply and demand scenario. It is expected that 40% of all vehicles will be electric (EV) by 2020 and hold 95% of the market by the mid century.
The interaction between our vehicles and oil will be diminished as our transportation tastes transition into electric relationships. With more and more automakers embracing society’s demand for the EV, the obvious fallout will be the decreased demand for oil as a transportation energy source. This is especially relevant in developed countries which are the largest consumers of crude oil.
Popular opinion on when the oil demand will peak is varied. Shell stated in 2016 that they expected peak demand to occur in five years but have since pushed that date back into the 2030’s, closer to the Bank of America prediction. There are some large oil nations which expect peak demand to be several decades away but nobody can say for certain when peak demand will occur. One fact that is for certain; the time is approaching where oil will no longer be considered as a scarce resource.