A Tesla.
A Tesla.

The growing popularity and affordability of all-electric cars has led the Carbon Tracker Initiative think tank and Imperial College London to suggest that the world could decrease its demand for oil by as many as two million barrels per day by 2025, according to Bloomberg. In the long run, the demand for oil could drop by as many as 25 million barrels per day by 2050.

Bloomberg reports that technological improvements in electric vehicles have lowered their cost, and the uptake rate of electric car use is rising. By 2020, all-electric cars may not cost more than conventional fossil fuel cars, and they might saturate the passenger car market by 2050.

Bloomberg adds that a glut of 2 million barrels a day has been causing the sluggish pace of the oil industry since 2014, bringing about the greatest downturn in a generation. Electric cars could throw off the oil industry by the same proportion, according to researchers.

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