Transport sector using less and less energy

A combination of more efficient engines, falling populations in the Organisation for Economic Co-operation and Development (OECD) countries, and increased use of alternative energy sources will see transport’s share of oil usage decline over the next 25 years, according to the BP Energy Outlook 2030 report. “Energy used for transport will continue to be dominated by oil, but should see its share of global energy use decline as other sectors grow more rapidly. Growth is expected to slow over the next 20 years to average 1.1% a year, compared to 1.8% p.a. during 1990-2010, with OECD demand slowing and then declining post-2015,” predicts the BP report. The slowing of growth in total energy in transport is related to higher oil prices and improving fuel economy, vehicle saturation in mature economies, and expected increases in taxation and subsidy reduction in developing economies.