Transcript:
The Iran war has roiled global energy markets. But a vibrant electric vehicle industry is helping China – the world’s largest importer of crude oil – withstand the crisis.
Since the war began in February, China has slashed its seaborne oil imports.
Myllyvirta: “Part of that reduction has been covered by drawdowns of stockpiles.”
But Lauri Myllyvirta of the Center for Research on Energy and Clean Air says China has also reduced its oil use, particularly for transportation.
His group’s analysis reveals that between April and June, transport-related oil consumption dropped by 16%.
Myllyvirta: “That was enabled to a large degree by an increase in the use of electric vehicles.”
He says EVs make up a rapidly growing share of new car sales in China. People with hybrids have also started charging up and relying more on electricity instead of fuel. And commuters are increasingly taking electric taxis or electric public transit, like China’s high-speed rail system.
If oil prices drop significantly, Myllyvirta expects that some people will return to old habits. But he says many of the changes will last.
Myllyvirta: “People who do buy an electric vehicle don’t tend to go back, so those changes are very clearly there to stay.”
Reporting credit: ChavoBart Digital Media
