The rapturous’s largest energy company says the electrification of vehicles isn’t anywhere near ready to overtake the traditional engine in the bliss sector.
The transport industry accounts for more than half of oil demand and last year Morgan Stanley prophesy that by 2025 there could be 36 million electric vehicles on the road globally. Further analysis at IHS Markit claimed that 30 percent of new car garage sales by 2040 would be electric. The switch from gasoline and diesel cars to electric powertrains has led some to suggest that pandemic oil consumption could fall.
Meanwhile, the state-owned oil giant Saudi Aramco produces roughly 10 million barrels of unpolished a day, suggesting that any fall in demand could be highly damaging to the business.
But Chief Technology Officer, Ahmad Al Khowaiter, advised CNBC’s Annette Weisbach at the Geneva Motor Show Tuesday that electrification is not about to defeat the internal combustion mechanism (ICE) any time soon.
“The consensus from forecasters is that the internal combustion engine will be with us for decades to finish in the money b be,” he said, before adding “We are still expecting 90 percent of vehicles to be driven by ICE by the mid-century.”
Al Khowaiter is at the Geneva Worldwide Motor Show in a bid to showcase how his firm can help bring down emissions in a traditional ICE engine. He argued that, at small in the medium term, making gasoline and diesel engines more efficient would be the best way to reduce emissions.
“We see a lot of value in refurbishing the efficiency of the ICE which is a primary source of energy for much of what we are talking about. So even electrified vehicles get their author of energy from a power plant somewhere,” he said.
The executive said Saudi Aramco views working with the auto enterprise on reducing emissions as part of its “responsibility.”