Global demand for oil at record highs
Global demand for oil is growing at a rate of 1.75% per year and this year oil usage will hit a record of 100 million barrels per day. With oil usage continuing to rise each year the day will come when there is either no oil left to drill or alternatively it is too expensive to extract the oil reserves that remain.
Currently, transitioning away from the combustion engine to electric vehicles is the leading idea to reduce oil usage globally. However, we are a long way from making a meaningful enough dent to start reducing the yearly demand for oil.
Instead of replacing trillions of dollars of transportation vehicles and infrastructure why not just replace the fuel?
Today, the worldwide electric vehicle market holds a 1% share of the auto industry and electrifying aircraft and maritime transport is still theoretical. The market for EV will continue to grow at an exponential rate but without huge technological advances and reduction in costs to battery and infrastructure, the EV market may not close the gap before global oil reserves are retired.
One of the main reasons it may be very challenging for the EV market to replace the combustion engine is the sheer size and cost to replace every car, plane, and ship on the planet not giving consideration to the fueling infrastructure that comes along with these vehicles. With over 1.3 billion cars and trucks, 40,000 commercial jets, 50,000 passenger and cargo ships in operation today the cost of replacement could be well into the 100’s of trillions of dollars.
Carbon Engineering’s AIR TO FUELS™ technology harnesses renewable electricity such as solar or wind, and inputs of water and air, to generate fuels that are drop-in compatible with today’s infrastructure and engines. It provides a way to deliver global scale quantities of ultra-low carbon transportation fuels that are cleaner burning than fossil fuels, avoid the infrastructure turn-over of hydrogen fuel cells, and do not suffer the land use and food security issues associated with biofuels.
Storage for renewable energy