In recent years, there has been a rapid expansion of electromobility in Norway, also due to very generous state support. Eight out of ten newly registered cars were purely electric last year. However, as the Swiss UBS bank informs in its report on market developments, oil demand did not fall as expected.
Last year, exactly 82.4% of all new cars sold in Norway were fully electric, the year before the market share of electric cars was 79.3%. This year’s share, as reported by the Oilprice portal, is even above the 90% mark. However, according to UBS, the impact on oil demand there is surprisingly negligible.
Norway is one of the global leaders in the development of electromobility. This is also the case thanks to generous state financial incentives. These are partly financed by the Global Government Pension Fund, one of the largest funds in the world. Revenues flow to Norway from the sale of oil and natural gas.
As the bank states in its report, Norwegians, like consumers in other countries, are worried about the real range of electric cars. Many of them therefore prefer to choose hybrid vehicles for longer journeys or, in this case, reach for cars with a combustion engine.
The bank further notes that the imperceptible drop in oil demand in a country where the share of electric cars in the new car market exceeds 90% should be a warning signal to those who predict its sharp decline in the coming years precisely because of the development of electric mobility. In addition, it notes that its outlook from a global perspective continues to point to growth in oil demand in the coming years.
