The Surprising Role of Oil Giants in the Electric Vehicle Transition

Two- and three-wheeled vehicles, such as motorcycles and rickshaws, are transitioning to electric power faster than cars in countries prioritizing the energy transition, leading to a significant reduction in oil demand. In countries like Kenya, India, Indonesia, and Thailand, startups and established manufacturers are promoting and selling battery-powered two-wheelers, displacing oil demand by one million barrels a day. This shift to electric mobility has reduced global oil demand by 1.8 million barrels per day, with two- and three-wheelers accounting for 60% of that reduction. Electric vehicles are crucial for the energy transition and meeting climate goals, as transportation accounts for about 20% of global greenhouse gas emissions.