EV Sales Leading to a Decoupling of Economic Growth from Oil Demand
December 15, 2023Comments
In this new white paper from investment firm Ridge Creek Global, we learn that energy-transition-related investments are rebounding, and as “we start looking at 2024 we can start to see the world nearing peak oil,” the report notes. “This is not coming from a concern about the planet or from geostrategic considerations but from a changing energy landscape… with increasing disconnects between global oil demand growth and global GDP growth…This decoupling of economic growth from oil demand is from more than just increasing efficiency in the use of oil; structural changes are forming. That lion’s share of the structural change is coming from EV sales.”
The report goes on to note that while some 18 percent of global new-vehicle sales are electric (13 percent fully electric and 5 percent plug-in hybrid), EV demand will accelerate as prices continue to drop.
“China has reached the cost-inflection point with EVs,” the report says, while “the United States, although not quite there yet, is very near that inflection point.”
Technologies: Management
