Oil touches most things that we use in our daily life: phone, computer, traditional cars, even electric cars (parts), and basically anything made through industrial means. The world uses approximately 98 million barrels of oil per day, and with developing countries such as China, India and Africa growing economically, the IEA predicts demand will be at roughly 102 million barrels a day through 2040.
What are the big drivers to this increase in demand? According to BP Energy Outlook, China’s demand is expected to grow by 63% by 2035 mostly due to the transportation sector, which will grow 93%. But with electric and hybrid cars coming into the mix, oils market share will slip from 91% to 86%.
And whose oil demand growth will overtake China? Why India of course. The IEA expects that by 2040 demand from India alone will reach 10 million barrels a day.
Africa’s oil demand is also on the rise, predicted to grow 78% by 2035. It is interesting to note that oil is Africa’s main source of energy, covering 40% of Africa’s energy demand. Natural gas is a close second.
And of course, we can’t forget one of the world’s largest user of crude: the United States. U.S. demand will actually lower from 18 million barrels per day to 17.5 million by 2040.
Check out the full article from Energy and Capital.