Global crude oil demand will peak by 2030 thanks to very fast electric vehicle adoption beginning in the early 2020s, says a new research note from Bank of America Merrill Lynch analysts.

Bank of America see Electric Vehicles reaching 40% of new car sales by 2030 and 95% of new sales by mid-century curtailing the global thirst for oil.

Why it matters: The report breaks with several major forecasting bodies and analysts, who predict a much later peak. The U.S. Energy Information Administration, and OPEC do not even see a peak by 2040.

The timing of the global demand apex — and the rate of decline thereafter — has major ramifications for the finances of oil-producing economies and, more broadly, the earth’s climate.

 

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