An expert outlined the conditions for curbing oil demand in China

20.11.2024

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Electrification and gasification of transportation will restrain oil demand in China, with electrification becoming the decisive factor in the long term. This opinion was shared on November 20 in an interview with Izvestia by Sergey Tereshkin, CEO of the OPEN OIL MARKET oil and raw materials marketplace.

"In the long term, the key factor will be China's energy transition, which could lead to reduced demand in passenger ground transportation. The share of electric vehicles and plug-in hybrids in new passenger car sales in China has grown from 5.7% in 2020 to 38% in 2023. According to the International Energy Agency's (IEA) conservative forecast, this share will increase to 68% by 2030, and oil savings from passenger vehicle use will reach 1.5 million barrels per day," he said.

The expert explained that these savings will be comparable to the current volume of seaborne oil shipments from Russia. This forecast is based on existing trends and regulatory standards, but the pace of transition to electric vehicles in China may be even faster, given that the country is a global leader in battery technology development.

"Another factor will be the gasification of freight transport, where liquefied natural gas (LNG) is gradually replacing diesel fuel, a petroleum product. In 2022, trucks running on LNG

Translated using ChatGPT.

Source: https://iz.ru/1794169/2024-11-20/ekspert-nazval-usloviia-sderzhivaniia-sprosa-na-neft-v-knr

#Oil Exports #Global Economy #Energy Market #Oil Demand #Supply and Demand #Oil Market Trends #China #Energy Policies #Energy Consumption

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