The coming electric disruption and its ripple effects on the region |
https://arab.news/zg69x
China’s electric surge is quietly rewriting the global oil story. As electric cars, buses, and trains race across Chinese cities, they are not just cleaning the air; they are chipping away at the demand that underpins South Asian remittance lifelines. China, the world’s largest oil importer, accounting for roughly 15-20% of global consumption, is aggressively pivoting toward electrification, backed by massive investments in solar, wind, hydro, nuclear, and advanced battery technologies.
Recent data underscore this shift. In 2025, new energy vehicles (NEVs) will surpass 50% of new car sales in China for the first time, with electric models displacing over 1 million barrels per day of oil demand already. Forecasts suggest this could rise significantly, contributing to a plateau in China’s oil consumption as early as the late 2020s.
Globally, electric vehicles are poised to displace 5 million barrels per day by 2030, with China leading the charge. This structural change, combined with slowing economic growth and efficiency gains elsewhere, is capping oil demand growth at historically low levels,........