Oil demand on Southeast Asia expected to rise until 2040, according to the International Energy Agency

OPEC cut extensions

On October 24, 2017, the International Energy Agency claimed that the demand for oil in Southeast Asia will continue to rise up until at least 2040, this is due to emerging nations that rely on the fossil fuel to transport their rapidly increasing populations by road. In accordance to this, oil consumption in the Southeast Asia is expected to expand to an approximately 6.6 million barrels a day by 2040, from the 4.7 million barrels per day as for the time being.

However, a global advertisement to replace combustible engines with electric-powered engines in vehicles in order to prevent climate change has amplified concerns in the oil industry, expecting the international oil demand could peak in the next 10 to 20 years. Despite of these concerns, the International Energy Agency are still expecting oil to continue meeting around 90% of transport-related demand in Southeast Asia.

In accordance to this, the International Energy Agency said that they are estimating of about 4 million electric cars in a total passenger vehicle stock of 62 million in 2040, however, the IEA said that electricity only records for 1% of transport energy demand. IEA also added that oil along with coal will soon lead development in Southeast Asia’s power and transport sectors due to Southeast Asia’s demand is anticipated to rise approximately by 60% in 2040.

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