(CNSNews.com) – At a hearing of the Senate Energy and Natural Resources Committee on Tuesday, Faith Birol, the head of the International Energy Agency, was asked for his views about the “electrification” of transportation.
“The number of electric cars will grow,” Birol told the panel. “But our numbers show that, even two decades from now, the biggest chunk of the cars we are running will be the existing internal combustion engines, the traditional cars.”
Birol said he expects the number of electric cars to grow in places such as Europe and China, where there is a lot of incentive and subsidies to produce them.
“And with the declining costs of batteries for electric cars, plus the very generous government subsidies in some countries, we see the electric cars are increasing substantially,” Birol said.
Birol said despite the proliferation of electric cars in some countries, the demand for oil will continue to grow.
“The cars are not the biggest part of the oil-demand growth,” he explained. “Oil demand today in the world is driven by trucks, jets, ships and, most important, (the) petrochemical industry. Even though there will be a lot of electric cars coming into markets, running in the streets of the world, we will still see that there is a need for new oil production.”
Birol said the anticipated growth in oil demand and production “is definitely good news for the U.S. economy.” more here