The adoption of electrification in the ongoing energy transition push is set to chip away at oil demand sooner and faster than previously expected, according to a new report by Rystad Energy.

In an updated base case published April 21, the energy consultancy firm now sees oil demand peaking in 2026 mainly by a rapidly growing electric vehicle (EV) market. Rystad Energy had previously forecast peak oil demand in 2028.

“Although oil demand is expected to recover above pre-virus levels, it will be just marginally,” said Sofia Guidi Di Sante, oil markets analyst at Rystad Energy, said in the firm’s report. “Any post-pandemic oil demand boom is tempered by structural declines that were already ongoing long before the virus, such as substitution in power, industry and buildings.”

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access