Oil: We still need (plenty) more supply

12 Oct 2017   Peak Oil

Analysts at HSBC suggest that despite a likely peak in LDV demand in 2025-30, the peak in total oil demand still looks much further off and they see a looming shortage of supply as a more pressing issue, pointing to upside in prices from current levels. Key Quotes “The rate of climate policy progress and technological advances in alternative transport means the outlook for global oil demand has become subject to an unusually high level of uncertainty.” “Our model indicates that on most scenarios, a combination of higher Electric Vehicle (EV) sales and improving fuel efficiency in the internal combustion engine (ICE) fleet leads to a peak in light duty vehicle (LDV) demand for oil in the period 2025-30, albeit with limited demand erosion before 2030 or so due to the scale of the existing LDV fleet.” “Total oil demand has the potential to continue growing for much longer, […]

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