Instead, Big Oil will lose its dominance in the transportation sector over a 25-year period as electric cars and mobility solutions become more popular.
Despite oil’s demand decline for transportation, the study predicts miles driven in the world’s largest automotive markets will actually increase thanks to new services.
According to the report, the majority of more than 1 billion vehicles on the world’s roads in 2040 will still likely feature an internal-combustion engine.
But cars powered solely by gasoline or diesel will see a major decline.
The report claims that less than 50% of new cars sold in 2031 will solely feature an internal-combustion engine – as hybrids of all varieties increase in popularity to meet stringent emission limits.
Even with lessened demand for fossil fuel-powered cars, the study predicted total oil demand will actually increase from 98 million barrels per day to 115 million barrels per day by 2040.
However, the industry’s dominance in the automotive sector will start to diminish due to stricter fuel-economy regulations and laws that limit carbon-dioxide emissions.