Global Markets: Peak oil demand to erase $19 trillion in oil income

Oil prices upThe adoption of 240 million electric vehicles by 2040 will cause oil demand to peak by the mid-2020s, which will destroy $19 trillion in income, according to Aurora Energy Research Ltd.

Aurora’s “analysis points to a possible energy future of mass electrification, digitization, and new technologies, in which the rise in electric vehicles and continued improvements in fuel efficiency lead to peak oil demand occurring in the mid-2020,” Richard Howard, head of research at Aurora, said in the report.

Ultimately, the displacement of around 8 million barrels per day could cause oil prices to fall to as low as $32 per barrel by 2040.

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