Electric Vehicles market to Displace 8 Million Barrels of Oil daily by 2040
The energy industry is currently going through a transformative period with electric vehicles becoming more and more common. In a recent conference managed by Bloomberg New Energy Finance in Asia, policymakers and financial leaders tackled some of the biggest questions concerning the future of the energy industry.
Key findings from the conference:
Electric Vehicle market will continue to grow and is an essential component of the market transition to clean energy. Bloomberg New Energy Finance expects the electric vehicle market to surge to in excess of 500 million vehicles on the road by 2040. Research indicates that the electric market will diversify as the electrification of infrastructure becomes more viable, with additional electric buses and trucks being added to the growing market.
The growth of electric vehicle industry is very significant to the oil market. Analysts believe the growing EV market will displace approximately 8 million barrels of oil every day by 2040. China is a leader in electric vehicle industry and intends to not only expand its domestic market but also become a global manufacturer by the 2020s.
Experts at the conference believe the disruption to the current energy market will happen soon as economies continue to develop at such as rapid rate. Policy makers are also looking at new technology and innovation to achieve carbon reduction targets. It is likely that clean energy technologies, most notably solar and wind will continue to become more efficient and cheaper and battery storage facilities will increase their capacities.
As the industry learns and develops, costs will continue to decrease. Other experts point towards the necessity to rely on technology to really drive the industry further forward. An energy specialist for Japan believes there is a great need for new technologies to close the industry development and energy supply gap.
Energy Storage is Essential
The costs of batteries are continuing to fall and as a result, manufacturers are increasing development of battery facilities. As a result, Asia is likely to expand its position as leader of battery storage facilities. Battery-based storage, integrated with renewable energy in areas lacking access to reliable energy resources will likely expand considerably during the next few years.
LNG will continue to be essential
Energy experts at the conference believe gas will still play a major part in the energy transition with likely increases of gas consumption in China, Japan, and South Korea. It is expected gas reserves will be required to supply energy when other sources fail and through the increase of regasification and floating storage facilities.
The transition is clearly moving towards a combination of renewable energy sources including wind, solar, biomass and support of the technology revolution. However, there will be obstacles which may hinder the development of certain energy markets. For example, a lack of charging infrastructure for the electric vehicle market, combined with lack of policy support may hinder the development of the electric vehicle market.
Conference leaders highlight that to continue the momentum, policymakers must be completely behind renewable energy and avoid trying to protect the traditional sources of energy generation.