Saudi Aramco says electric vehicles won't heavily impact oil demand

The world's largest energy company says the electrification of vehicles isn't anywhere near ready to overtake the traditional engine in the transport sector.


The transport industry accounts for more than half of oil demand and last year Morgan Stanley forecast that by 2025 there could be 36 million electric vehicles on the road globally. Further analysis at IHS Markit claimed that 30 percent of new car sales by 2040 would be electric. The switch from gasoline and diesel cars to electric powertrains has led some to suggest that global oil consumption could fall.


Meanwhile, the state-owned oil giant Saudi Aramco produces roughly 10 million barrels of crude a day, suggesting that any fall in demand could be highly damaging to the business.


But Chief Technology Officer, Ahmad Al Khowaiter, told CNBC's Annette Weisbach at the Geneva Motor Show Tuesday that electrification is not about to defeat the internal combustion engine (ICE) any time soon.


"The consensus from forecasters is that the internal combustion engine will be with us for decades to come," he said, before adding "We are still expecting 90 percent of vehicles to be driven by ICE by the mid-century."


Al Khowaiter is at the Geneva International Motor Show in a bid to showcase how his firm can help bring down emissions in a traditional ICE engine. He argued that, at least in the medium term, making gasoline and diesel engines more efficient would be the best way to reduce emissions.


"We see a lot of value in improving the efficiency of the ICE which is a primary source of energy for much of what we are talking about. So even electrified vehicles get their source of energy from a power plant somewhere," he said.


The executive said Saudi Aramco views working with the auto industry on reducing emissions as part of its "responsibility."


Source: https://www.cnbc.com/2019/03/05/saudi-aramco-says-electric-vehicles-wont-heavily-impact-oil-demand.html

NAVIGATION

CONTACT US

(469) 518-0099   admin@sofiexploration.com

6136 Frisco Square, Suite 370,  Frisco, Texas 75034

Our Sofi Exploration Team thanks you for the time and effort in evaluating our partnerships. For any further information, please feel free to call Jennifer Medina at (469) 518-0099
Sofi Exploration | This content is provided for informational purposes only. Information on this website is not intended to be a solicitation of any kind. Nothing herein shall be construed as tax, legal or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. Potential investors should consult their attorney, accountant and financial advisers before investing in oil and gas. Past performance is not a guarantee of future performance or returns.
Copyright © Sofi. All rights reserved.
  • Insta-web-ready
  • facebook icon-01
  • Manta-01
  • linked in-01