May 18, 2022 - Energy & Environment

EVs are shoving aside real volumes of oil

Global oil demand avoided by electric vehicles
Reproduced from BloombergNEF; Note: includes a small number of fuel-cell vehicles; Chart: Axios Visuals

Electric vehicles displaced roughly 1.5 million barrels per day of oil last year, new analysis shows, an amount slated to grow as EV sales keep rising.

Why it matters: The new estimates from the research firm BloombergNEF help to show EVs are shedding their status as a niche climate technology.

  • Total transportation fuel demand was 43.7 million barrels per day last year, the firm said.
  • The amount EVs have displaced doubled over the last six years, BloombergNEF said.

The intrigue: What kinds of EVs are doing the heaviest lifting right now is surprising (to me anyway!).

  • "Two- and three-wheeled EVs accounted for 67% of the oil demand avoided in 2021," the report notes, citing rapid adoption in Asia.
  • Buses were next at 16% and then followed by passenger vehicles at 13%, though BloombergNEF adds that they're the fastest-growing segment.

The big picture: BloombergNEF said last year's displaced oil demand amounts to roughly one-fifth of Russia's pre-invasion exports.

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