Global Roundup: EV Shift, Nuclear Funding, and LPG Demand

Global oil demand could fall to 99 million barrels per day by 2040 due to factors accelerating electric vehicle adoption, according to a new report from Wood Mackenzie. The analysis firm said Thursday that oil supply disruptions, high fuel prices, and faster battery innovation are creating fresh incentives for EV investment, with consequences for long-term petroleum demand.

Wood Mackenzie reported that wars affecting oil-producing Russia and Iran have exposed governments and consumers to higher fuel prices and supply risks. The firm also noted rapid technology advances, particularly in China, on five-minute charging and new battery chemistries. The shift is expected to be uneven, with Europe's EV market share potentially climbing from 3% in 2025 to 35% by 2040, while the U.S. share could rise from 3% today to 20% by 2040.

The analysis suggests accelerating EV innovation outside the U.S. could eventually force Washington to take transport electrification more seriously for domestic manufacturers to remain competitive. David Brown, a report author, stated this could have implications for U.S. oil demand. The firm also noted that supporting a 50% increase in global EV volumes by 2040 would require an additional $45 billion in metals investment over the next decade, with copper emerging as the biggest constraint.

In other energy development news, the U.S. Department of Energy is preparing to provide X-energy with another $1 billion for a planned advanced nuclear reactor project, bringing total available federal funding to as much as $2.15 billion. According to OilPrice.com, CEO Clay Sell said Thursday the funding comes through the Advanced Reactor Demonstration Program and carries a 50/50 cost-share requirement with private capital.

X-energy and Dow plan to deploy the reactor technology at Dow's Seadrift petrochemical and plastics complex in Texas. The project, which submitted a construction permit application last year, aims to replace existing energy units and provide both electricity and industrial steam, targeting operation in the early 2030s. Sell said it is expected to be the first grid-scale advanced nuclear reactor deployed at an industrial site in North America.

On the hydrocarbon demand side, India's state-owned refiners are in talks to secure more U.S. liquefied petroleum gas under annual contracts for next year, Rigzone reported. The news indicates continued international demand for U.S. energy exports, which includes production from basins like the Bakken.

For Bakken operators, these global developments highlight competing long-term demand signals. WoodMac's EV outlook suggests potential pressure on future oil consumption growth, while India's pursuit of U.S. LPG underscores ongoing export opportunities. The massive federal investment in next-generation nuclear power also illustrates the scale of funding being directed toward alternative energy technologies.