Electric vehicles could halve global oil refining demand by 2050.
2021-09-24
Electric vehicles could halve global oil refining demand by 2050.
Guishi Automotive News: According to foreign media reports, consulting firm Rystad Energy says the global push to electrify road transportation—driven by efforts to reduce carbon emissions—could cut global demand for oil refining capacity by half by 2050.
Mukesh Sahdev, Senior Vice President and Head of Downstream at Rystad Energy, stated: "By 2050, our level of electrification will very likely reach around 90%." He also noted that this scenario could potentially lead to a 50% decline in global refining volumes. Sahdev believes electric vehicles will significantly reduce gasoline and diesel consumption worldwide; however, due to ongoing urbanization, demand for refined oil products in sectors such as aviation, shipping, and petrochemicals may remain robust.
He also said, "With refining volumes dropping by 50%, how will we meet these growing demands? I believe this is a clear signal that many high-demand sectors may soon face a shortage of refined oil products. This, in turn, will lead to significant shifts in downstream assets across the entire supply chain." For instance, coking equipment—upgraded facilities used to produce gasoline and diesel—will need to adjust their operations to ramp up production of petroleum coke, which is increasingly being diverted for use in battery-grade graphite. He added that directly converting crude oil into petrochemical products is set to become another key trend in the future.
However, in the short term, global demand for oil could still rise. The consulting firm forecasts that, as refineries maximize gasoline production to meet pent-up demand triggered by the COVID-19 pandemic, global crude oil processing volumes will surge to 80.1 million barrels per day in the second half of 2021.
Translated from Sina Auto
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Electric vehicles could halve global oil refining demand by 2050.
2021-09-24
Electric vehicles could halve global oil refining demand by 2050.
Guishi Automotive News: According to foreign media reports, consulting firm Rystad Energy says the global push to electrify road transportation—driven by efforts to reduce carbon emissions—could cut global demand for oil refining capacity by half by 2050.
Mukesh Sahdev, Senior Vice President and Head of Downstream at Rystad Energy, stated: "By 2050, our level of electrification will very likely reach around 90%." He also noted that this scenario could potentially lead to a 50% decline in global refining volumes. Sahdev believes electric vehicles will significantly reduce gasoline and diesel consumption worldwide; however, due to ongoing urbanization, demand for refined oil products in sectors such as aviation, shipping, and petrochemicals may remain robust.
He also said, "With refining volumes dropping by 50%, how will we meet these growing demands? I believe this is a clear signal that many high-demand sectors may soon face a shortage of refined oil products. This, in turn, will lead to significant shifts in downstream assets across the entire supply chain." For instance, coking equipment—upgraded facilities used to produce gasoline and diesel—will need to adjust their operations to ramp up production of petroleum coke, which is increasingly being diverted for use in battery-grade graphite. He added that directly converting crude oil into petrochemical products is set to become another key trend in the future.
However, in the short term, global demand for oil could still rise. The consulting firm forecasts that, as refineries maximize gasoline production to meet pent-up demand triggered by the COVID-19 pandemic, global crude oil processing volumes will surge to 80.1 million barrels per day in the second half of 2021.
Translated from Sina Auto
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