Global Oil Demand to Dip as More Countries Embrace Plastic Ban

Global Oil Demand to Dip as More Countries Embrace Plastic Ban

Photo by: Maurice Angres via Pixabay

 

Over the next 20 years, the demand for oil will decrease as single-use plastic items get banned in several countries, according to BP, a British oil and gas company, reported The Guardian.

The London-based multinational firm, however, remains hopeful that oil demand will still rise in the years to come, even predicting that it will achieve peak demand growth by 2030.

According to BP’s Group Chief Economist Spencer Dale, issues surrounding plastic use and its subsequent environmental impact exist in several countries, not only in the UK. He even mentioned China as one of them.

In a speech delivered earlier in January this year, British Prime Minister Theresa May announced the government’s 25-year environmental plan, which involves limiting the use of plastic, particularly in supermarkets.

Worldwide plastic bans, as predicted by Dale, could lower oil demand to as much as 2 million barrels of oil per day by 2040.

Between 2035 and 2040, oil demand will reach an estimated 110 million barrels per day, based on Energy Outlook 2018, a report published by BP on February 20.

According to an oil market report published on the website of Paris-based International Energy Agency on February 13, the global oil demand in January of this year was 97.7 million barrels per day.

Still, Dale warned that it will be tough to determine when exactly demand will peak because, according to him, “small changes can shift it by five to 10 years.”

Another report also released this month, this time from Fitch Rating, a New York-based credit rating agency, made a forecast that oil demand could soar by 2030 due to demand for electric vehicles.

Analyzing the development of EVs in 2017, Fitch Rating predicted that 10 million EVs could be sold by 2025. There could possibly be 1.3 billion EVs plying the roads by 2040.