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Efficient Cars, Not Electric Cars, Will Be Worse for Oil

May 21, 2018, 2:38 PM

Oil demand is set to face an even bigger threat from fuel-efficient engines than from electric vehicles over the next two decades, according to Bloomberg New Energy Finance.

Engine and other vehicle improvements that increase the distance vehicles can travel per unit of fuel will erode global oil consumption by 7.5 million barrels a day by 2040, more than the 6.4-million-barrel decline due to electric vehicles, BNEF forecast in a May 21 report. Demand from passenger cars is set to peak in 2022 before falling to 15.9 million barrels a day from 24 million now, according to the note.

“Improvements ...