According to multinational energy giant, BP, international demand for oil will still be increasing in 2035, despite massive growth in the electric vehicles market. It has been estimated that the number of electric vehicles on the road will increase from around 1 million, to 100 million, over the course of the next few decades.
Many large car manufacturers are moving into the electric vehicles market, looking to compete with the likes of Tesla Motors Inc. Although Tesla’s cars have generally been aimed at the middle class, their Model 3 has a relatively low price, starting at around $35,000. The Model 3 will be Tesla’s most-produced EV.
BP’s recently published energy outlook estimates that fossil fuels will continue to grow, and account for 75% of the world’s energy mix in 2035.
Spencer Dale, BP’s chief economist, explained why demand for oil will continue to increase, despite the rapid growth the EV market is predicted to experience. He said “It’s not Teslas and the US. It’s the fact that 2 billion people, much of that in Asia, are moving to middle incomes, can buy their first motor car and that drives up oil demand. It’s that stuff that really matters.”
As of the 25/01/2017 (end of the trading day), BP’s stock is valued at £491.14, giving the firm a market cap of approximately £94.4 billion.