Share This On Social

Crude oil demand in Southeast Asia will continue to grow at least until 2040 as developing economies rely on fossil fuels to transport rapidly growing populations, goods and produce plastics, according to the International Energy Agency (IEA). The oil used in the region will increase to about 6.6 million barrels per day by 2040 from 4.7 million barrels per day, with the number of road vehicles increasing by two thirds to about 62 million cars. The IEA does not make a forecast for the post-2040 period.

The global replace of internal combustion engines with electric cars to combat climate change has sparked concerns in the oil industry that demand for raw materials may rise to peak levels over the next 10-20 years. However, the crude oil will continue to satisfy about 90% of the demand for transport in Southeast Asia, especially for trucks and ships, according to the experts.

The IEA expects electricity to account for only 1% of the demand in the transport sector in 2040, predicting that there are only about 4 million electric cars out of a total of 62 million.

At the same time, the total energy demand in Southeast Asia is expected to rise by nearly 60% by 2040 due to electricity production, as rising incomes in the region are pushing more people to buy electrical appliances, including air conditioners.

The IEA’s findings show that Southeast Asia will become a major driver of global energy demand, as the economy is tripled by size and the total population has grown by a fifth.

