«Problems of economics and management of oil and gas complex»

Prospects of promotion of petroleum motor fuels substitutes in Europe: risks for oil demand

UDC: 338.012
DOI: 10.33285/1999-6942-2022-2(206)-58-64

Authors:

¹ Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow, Russia

Keywords: Europe, oil, electric vehicles, biofuels, peak oil demand

Annotation:

The European Union is the leader in promoting substitutes of petroleum motor fuels in road transportation and the COVID-19 pandemic has accelerated the process of substitution. The article analyzes the promotion of electric vehicles and biofuels in European countries and instruments to stimulate sales of electric vehicles, such as requirements for new cars CO2 emissions, exemption from taxes when buying a car, transport tax, tax deductions, subsidies, including petroleum products in the emission traiding system. The policy of the European countries has led to a jump-like growth in electric vehicles sales and significantly brought the peak in oil demand closer. After the recovery growth, the demand for oil will decrease rapidly, and the structure of demand for petroleum products will also change in favor of gasoline. Consumption will decline in the main export market of Russian companies, which will negatively affect both the economy of oil companies and the Russian economy as a whole.

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