Growing At Ludicrous Speed?
18 Mar 2016: Gasoline and diesel demand are the mainstay of the oil markets worldwide, as the transport sector accounts for more than half of all of global oil demand. Worldwide population growth and rapid economic progress in developing countries are expected to underpin further growth in transportation fuels. In their latest Medium Term Oil Market Report, the IEA forecasts that non-OECD gasoline demand will rise by 4.0% per annum in 2015-2021, while in the OECD countries it declines by 1.1%. In the OECD, strong efficiency gains offset an only modestly expanding vehicle fleet. Some of these efficiency gains come from the implementation of stricter Corporate Average Fuel Efficiency (CAFE) Standards in the United States. In this opinion, however, we focus on another development that will have an impact on long-term demand for transportation fuels: the increasing penetration of plug-in electric vehicles (PEVs).
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