Electric cars, new restrictions, to eliminate millions of barrels of oil by 2025, Barclays says
British analysts forecast that global oil consumption could take a big hit in the coming years as more and more countries and municipalities take steps to ban gasoline engines from their streets.
CNBC reported analysts of London-based Barclays predict that the adoption of electric vehicles, along with improved fuel efficiency, could eliminate 3.5 million barrels a day of demand from cars by 2025. In Hawaii, statewide gasoline consumption was 39.6 million gallons, or a little less than 1 million barrels, in July, according to the Hawaii State Energy Office.
Should EVs make-up one-third of the car market by 2040, the number would increase to 9 million barrels a day, Barclays noted. Based on OPEC forecasts, world oil demand will be 96.8 million barrels a day this year.
Barclays' forecast comes only days after U.S. car manufacturers General Motors and Ford announced they will invest heavily in the development of new EV and plug-in hybrid models.
European nations such as France, Germany and the U.K. have proposed measures to ban or curb the use of vehicles with an internal combustion engine. Most recently China, one of the largest car markets in the world, followed suit. In the U.S., California is considering a ban.
Barclays acknowledged that there are still a number of barriers to EV adoption, including price, range and the auto industry's ability to increase production. California-based electric car company Tesla this week announced it missed the third quarter production goals for the Model 3 by more than 1,200 cars.
The International Energy Agency said that EV sales rose by 40 percent last year, though the roughly 2 million EV on the road account for less than 0.2 percent all light-duty vehicles in the world.