BP Expects Self-Driving Vehicles to Slump Oil Demand

Oil and gas giant BP, has joined other petroleum giants like Royal Dutch Shell and announced for the first time that it expects a peak oil demand by the end of 2030, around a daily demand of 110 million barrels, with the impact of consumer preferences’ shift towards shared travelling, and self – driving cars. According to the company’s benchmark report “Energy Outlook”, despite the expectation for the transportation demand to double itself by 2040, a 100-fold growth anticipated in electrical vehicles’, which will have more efficient engines, will cause a visible decline in oil demand. BP anticipates that self-driving vehicles will be available for purchase by the beginning of 2020s, but that the first fleets will be snatched up by companies offering mobility services instead of individual consumers due to their prices. BP also predicts that plastic production and the petrochemical industry will be the main demand centre for oil after 2030, although the transportation sector will remain the main driver behind demand growth. – Reuters