US gas demand may drop as much as 20% in coming years, report says image

Depending on the automakers’ pace of launching affordable electric cars, the US gasoline demand is predicted to be cut by 5 to 20 percent over the next two decades.

Even if electric cars have not gained so much traction in the past decade, this is going to change in the coming years, as increasingly more automakers have lately announced their plants to invest billions of dollars into developing more environmentally friendly vehicles. Therefore, if they start to deploy more affordable battery-powered cars with better mileage, the gasoline demand in the United States is likely to drop as much as 20 percent by 2035, according to an estimate made by the energy consulting firm Wood Mackenzie. This scenario is linked though with a 35 percent market share of electric cars over the next two decades.

The report said that a more likely outcome was a 5 percent slip in gasoline demand as electric cars manage to account for around 10 percent of the US vehicle fleet by 2035. However, there is a long way to that point, considering the fact the current US market for such vehicles is insignificant, with pure electric cars amounting to less than 1 percent of total sales so far this year. There are carmakers that have promised to change the public’s perception and Tesla is one of them. Elon Musk hopes the 35,000-dollar Model 3 – set to be launched next year – will convince buyers of the “power” of the electric flow.

Via The Wall Street Journal