HOUSTON, June 21 (UPI) -- Though electric vehicles are putting a dent in conventional energy demand, broader impacts aren't expected until at least 2020, a report finds.
A report from consultant group Wood Mackenzie finds more accessible electric vehicles like the Tesla Model 3 and the Chevrolet Bolt EV are helping to build a larger market share in the United States.
A January study from management consultant firm McKinsey & Company found the share of electric vehicles could be as high as 50 percent by 2030, though usage varies along development lines with dense urban populations moving to alternative vehicles quicker than rural areas.
In terms of costs, the January report said EVs may become competitive with conventional vehicles by the next decade.
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Prajit Ghosh, a research director at Wood Mackenzie, said the increased share in EVs could be a disruptive force for oil and power sectors by the middle of the next decade.
"Can it get disruptive for the energy sector? It could -- just not right now," he said in a statement.
Wood Mackenzie estimates EVs could erase about 300,000 barrels of gasoline demand from the U.S. market by 2035 at the low end and as much as 1 million bpd at the high end.
Low demand usually corresponds with a decline in energy prices, provided production remains relatively adequate. In a weekly market report, motor club AAA reports retail gasoline prices are more or less stable because of a balance between supply and demand.
Lower energy prices, meanwhile, could sway consumer habits. A June report from the Federal Reserve Bank of Dallas finds automobile sales were up slightly from one year ago, with more people buying trucks and sports utility vehicles than cars.
The International Energy Agency said it expects a record-setting 1.26 million electric vehicles to be on the road by the end of the year. Despite recent trends, the IEA said electric vehicles only make up about 0.1 percent of the global market share for vehicles.
