What was once the aspiration of a couple niche car makers has become a central element in the strategies of almost all of the world’s major manufacturers. With improving technology, falling battery costs and the need to improve urban air quality, the electric vehicle is well placed to increase its share of the global car fleet. Those in the oil and gas industry must stay on their game more that ever, highlighting the importance Oil and Gas Insurance in New Mexico and other areas in which the industry makes up a significant portion of the economy.
There is expected growth in electric car numbers over the next two decades from around 1.2 million vehicles today to around 70 million in 2035. Demand for oil from cars will continue to increase, but the increase will be less than double, despite the numbers of cars doubling. Much of the mitigation will come from gains in the fuel efficiency of gasoline engines.
Overall, global oil demand is expected to grow over the next 20 years, due to increasing prosperity in fast-growing Asian economies. Electric vehicles will have an impact on oil demand, but not a game-changing one just yet.
Efficiency is a key factor and may minimize the impact of electric cars. Over the past 20 years, vehicles have become increasingly efficient. This will continue to evolve with the potential for vehicles to reach up to 50 mpg, leading to a significant saving in oil consumption.
Electric vehicles are likely to slow the growth in oil demand, however; during the phase when electric vehicles account for a minority of passenger cars, which could last for decades, the emissions benefits could be outweighed by potential gains associated with oil-powered cars becoming more efficient than ever.
What Does this Mean?
Electric vehicles will form a foundation for a lower carbon future, but it would be wise to pay as much attention to improving car efficiency and using more gas, and less coal, in power generation. These two factors alone could generate carbon savings over the next 20 years many times greater than that associated with the expansion of electric vehicles.
There will be rapid evolution of the transportation sector that will change our relationship with cars, emphasizing for those in the field, the need for Oil and Gas Insurance
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.