EV may cut global refining capacity demand in 2050 

A global drive towards electrification of road transport to reduce carbon emissions may cut demand for the world’s oil refining capacity by half in 2050, consultancy Rystad Energy says.

“Going forward we will be touching by 2050 somewhere very close to 90% of electrification,” Mukesh Sahdev, senior vice president and head of downstream at Rystad Energy said, adding that
this scenario would probably lead to a 50% decline in global refining
capacity.

Electric vehicles will cut global consumption of gasoline and diesel, but demand for other refined oil products in aviation, maritime and petrochemical sectors could remain high because of urbanisation which will pose a challenge to the refining sector, Mukesh said.

“How are we going to meet those demands with a 50% scale down in refining capacity? I think that’s a big signal that we might have a lot of shorts in the sectors which are coming with demand,” he added.