The advent of EVs is reportedly making a dent in oil demand

The advent of EVs is reportedly making a dent in oil demand

According to a Bloomberg New Energy, oil industry experts project that demand for oil will be dramatically affected by the increasing adoption of electric vehicles (EVs). The higher sales of electric public transport vehicles in China and other countries, has already started making a dent in oil demand.

In an indication that EVs are now biting into oil demand, nearly 279,000 barrels of oil are being removed from demand per day, largely because of the fact that the equivalent of London’s bus fleet is being added by China every month or so.

Highlighting the fact that the change in oil demand due to the advent of EVs is largely being driven by economics, the Bloomberg New Energy report has elaborated that the total cost of EV ownership notably outperforms the alternative options.

As per the report, the total cost of ownership of a 110kWh battery e-bus coupled with the most expensive wireless charging option comes at par with a diesel-powered bus at approximately 60,000 km completed per year.

To explain the scenario differently, the report has asserted that, as compared to a diesel bus, running an e-bus with the smallest battery -- coupled with the most expensive wireless charging option -- is much cheaper in a medium-sized city, where the average daily distance travelled by buses is 170 km.

The report further added that “Even the most expensive electric bus at 80,000km per year has a TCO of $0.92/km, just at par with diesel buses.”