China Oil Demand to Peak in 2040

Oil demand from China's transportation sector will peak in 2030 and flatten thereafter, mainly due to falling gasoline demand for passenger vehicles that become more efficient and increasingly electricity-driven, the International Energy Agency said in its latest World Energy Outlook report on Tuesday. The flattening of China's oil demand growth reflects its fundamental change from an industry-driven economy to one based on services and consumption, Platts reported. It also has major implications for Beijing's reliance on oil imports, energy security and the overall energy mix. "China's energy future will not be a continuation of previous trends," the IEA said, adding that the country's energy choices will have profound implications for global markets, trade and investment flows. Oil will still remain the backbone of China's transport fuel demand till 2030, growing by 3.3% per year on average, but its share will fall to just above three-quarters, from nearly 90% today, the IEA said. The remaining 25% of transport fuels will be biofuels, natural gas and electricity.