BofA-ML forecasts peak oil demand for 2030
Rapid adoption of electric vehicles will see global demand for oil peak by 2030, analysts at Bank of America-Merrill Lynch forecast.
Even without subsidies, EVs would reach cost equivalence with conventional vehicles by 2023, they said, thanks to the considerable progress made by battery technology.
"Once EVs' share of car sales rises by more than 1.5 ppt per year (2.0 ppt below our base case), oil demand peaks about 10 years later," BofA said.
BofA-ML's projections were for EVs to account for 40% of auto sales by 2030 and by 95% by 2050.
Once oil demand hit its peak, the investment bank predicted it would shrink by roughly 0.5% per year over the following decade.