Oil demand growth is set to ease due to efficiency gains and electric cars

While global oil demand growth is set to ease, in particular as China slows down, it still increases an annual average of 1.2 million barrels per day (mb/d) to 2024, according to the report titled “Oil 2019”. Still, the IEA continues to see no peak in oil demand, as petrochemicals and jet fuel remain the key drivers of growth, particularly in the US and Asia, more than offsetting a slowdown in gasoline due to efficiency gains and electric cars.

The US will drive global oil supply growth over the next five years according to the International Energy Agency’s (IEA) annual oil market forecast.

“The second wave of the US shale revolution is coming,” said Dr Fatih Birol, the IEA’s executive director. “It will see the US account for 70 per cent of the rise in global oil production and some 75 per cent of the expansion in LNG trade over the next five years.  This will shake up international oil and gas trade flows, with profound implications for the geopolitics of energy.”