Report: Global oil demand to peak in 2023

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Global oil demand will peak sooner than expected in 2023 as renewable energy expands and the adoption of electric vehicles grows more quickly, and yet the world will still fall short of the temperature goals adopted in the recent Paris climate agreement, according to a new report released Monday.

The new Energy Transition Outlook report from Norway-based energy consulting and services firm DNV GL sees natural gas surpassing oil as the world's largest energy source in 2026. Gas and renewables like wind and solar will keep growing, while oil will plateau and then steadily fall. Global coal use already is on the downswing.

Global energy demand will peak in 2035, continuing to serve larger populations but with more efficient energy sources. North American energy demand already peaked in 2014, and U.S. energy companies will increasingly rely on exports to ship out its oil and gas production.

The percentage of fossil fuels in the global energy mix will fall from 80 percent today to 50 percent by 2050,the report contends.

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Europe is leading the pace in electric vehicle adoption and, by 2027, half of new cars sold in Europe will be battery powered. By 2033, about 50 percent of the new cars sold in North America, China and India will be electric vehicles, dramatically reducing the transportation sector's reliance on oil.

"This transition is wide and fast, and yet it's still not enough to get us in line with the Paris climate agreement," said DNV Chief Executive Remi Eriksen in a phone interview from Norway. "I think that's a bit alarming."

That does not mean we should give up, he said, just that there's much more work to do.