Global trend to use the Electrical Vehicles is emerging fast and it is estimated that Electric Vehicles are expected to be 30 per cent of vehicle sales by 2040 (CNBC, 2 March 2018). The adoption of Electrical Vehicles will be prudent as those would be more environmental friendly and economically efficient. The use of electric power instead of oil for the movement of vehicles will definitely reduce the oil consumption.
Presently global oil demand is 99 million barrels per day (Oil Market Report; retrieved from www.iea.org/oilmarketreport/omrpublic/) which is increasing at the rate of 1.2 million barrel per day (Oil 2018 retrieved from www.iea.org/oil2018/) i.e. is approximately one per cent annually. By 2040 once Electrical Vehicles as estimated will be 30 per cent of total vehicles the global oil demand would have reached 122 million barrel per day (mbpd).
Recently 66.7 per cent of oil demand is being used by vehicles (Quora, retrieved from www.quora.com/How-much-of-the-oil-production-is-consumed-by-cars) which will be reduced by 30 per cent in 2040 as Electric Vehicles will be 30 per cent of the vehicles. Hence it is estimated that in year 2040 the earning through Petrodollar will lose its value by about U.S $ 800 billion per annum and will further decrease it to one to two per cent annually.
China has now become the highest oil importer by importing 8.4 mbpd of oil as compared to 7.9 mbpd by the U.S (Maritime Executive,www.maritime-executive.com/article/china-surpasses-u-s-as-largest-crude-oil-importer). China is in agreement with Russia and Angola to purchase 2.36 mbpd of oil by paying in Renminbi (Reuters, Business News March 29, 2018) and is entering in agreement with Venezuela and Iran to buy 2.7mbpd of oil by making the payment in Renminbi (The Straits Time, 9 April, 2018). Such arrangements will further decrease the value of Petrodollar to nearly U.S $ 180 billion per annum.
It will be prudent to analyse facets explained above with a view to draw pragmatic futuristic global diplo-economic conclusions including the facet of Blue Diplomacy.
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