Brand new research predicts world oil demand will peak in 2020

A brand new study forecasts that the world's oil intake will continue to increase yearly for the next nine years, and then disappear dramatically. The report goes on further to say that in 2035 oil usage will be lower than it was in 2010. Source for this article: New study predicts world oil demand will peak in 2020

2020 oil peakThe Ricardo Strategic consulting firm is situated in England. It estimates that in 2020 there will be an oil demand peak. The reason behind this is because of increases in option fuels, increased combustion engines and increased regulation.Increased regulationAll governments appear to be interested in the same thing right now. They are all headed towards more regulation rather than less. Brand new automobiles have to have 54.5 miles per gallon by 2025 with the Corporate Average Gas mileage (CAFÉ) mandate.As reported by Ricardo, oil usage will be impacted by hybrid and electric cars. The downward slide will have nothing to do with these vehicles.

The study shows other factors.Better enginesImproved combustion engines will make an enormous difference. The Ricardo study says that an “evolutionary change in the automotive sector will bring about a revolutionary change in fuel demand.” The CAFÉ mandate will make a difference in this technology.Rise of biofuelsThe agriculture industry will do better with the increasing costs for biomass; Ricardo claims will lessen the demand. Ricardo spoke of this. It said:“As a result, the study projects that the production of first generation biofuels may increase by 5-6 times over today’s levels.”Biomass is a renewable energy source made from living organic matter. It is the basis of biofuel production.The natural gas switchRicardo also points to an increased use of natural fuel vehicles as a factor in the world’s decline of oil consumption:“The improving supply outlook for natural gas … is likely to drive an increasing disconnect of the gas price from the oil price, encouraging substitution of oil in both stationary and on-road transportation.”

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