EVs are becoming a key tool for curbing oil demand, but for now less-flashy tech — improved efficiency — is saving more barrels on the roads, Ben writes.
Driving the news: The chart above is adapted from the International Energy Agency’s latest monthly oil market report.
- It finds that growing EV sales and better efficiency of new petro-powered vehicles will together knock almost 900,000 barrels per day off 2023 oil demand growth.
- “Efficiency gains account for the lion’s share of this saving (610 kb/d) with EVs eliminating a further 260 kb/d of road fuel usage.”
Why it matters: In the near term, even displacing a fraction of daily oil demand is “especially vital in a supply-constrained oil market,” IEA notes.