Global consumption of petrol continues to slowdown over the decades and the situation will have profound implications for the business strategies of oil-producing companies and countries, Reuters posited in a special report yesterday.

“There is every reason to expect that slowdown to continue and intensify if there is a widespread displacement of petroleum by electric vehicles,” the agency said.

It said that slower growth will intensify intra-company competition for market share putting downward pressure on prices, revenues, investment and employment over the next two decades.

Consumption growth has been progressively slowing since the early 1970s and that underlying trend looks set to continue through the 2020s and 2030s, it said. Over the last five decades, the global economy has continued expanding but consumers have become efficient in their use of oil or substituted cheaper fuels such as natural gas.

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Source: OrientEnergyReview