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00:00:00
>> Electric cars could spell big trouble for big oil. The long-awaited Tesla Model 3 began rolling off the production line on Friday, while Volvo said it would be the first traditional automaker to phase out gas engines. Researchers at Imperial College London, predicting such cars will see oil demand drop by 2 million barrels per day, as early as 2025.
00:00:24
I'm Reuter's Emily Wither at what many describe as the Olympics of the oil and gas industry, this year's World Petroleum Congress is in Istanbul. So jut how worried are people here about the rise of the electric car. Electric cars are also becoming more affordable as battery prices drop.
00:00:43
That prospects already threaten wrenching change for the oil industry.>> Electricity investments, for the first time, overtook investments in the oil and gas sector.>> That's the head of the International Energy Agency. He says global investments in oil and gas saw another big decline for the second year running.
00:01:03
No surprise though, if the oil industry body wants to stay positive.>> We still believe that the global oil demands will continue to grow despite the growing electric cars because a lot of oil is needed for trucks, for ships, for jets, and for the chemical industry.>> Not everyone is so convinced.
00:01:27
Market watcher, Daniel Yergin, agrees that oil demand will continue to grow in the short term, but says it'll level out by the middle of 2030. He says oil companies except gasoline demand will drop, but adds that electric cars are just part of the story.>> There are other really important things that are happening with cars, too which is autonomous vehicles and ride healing and also fuel efficiency standards.
00:01:54
In fact, the fuel efficiency standards may be even more important than electric vehicles in terms of what happens to gas demand.>> While attendees of this conference may be keen to play down the threats to the oil industry, a transport revolution is coming with electric cars leading the way.
00:02:12
And every one that hits the road means less demand at the pumps.