The rapid adoption of electric vehicles (EVs) is helping cut global oil consumption and strengthen economic security, according to a new study by energy think tank Ember. Daan Walter, Principal at Ember, described oil as “the Achilles’ heel of the global economy,” highlighting Asia’s particular vulnerability amid geopolitical tensions.
Oil Vulnerability Remains High
- 79% of the global population lives in oil-importing countries.
- Every $10 per barrel increase in oil prices adds about $160 billion annually to the global import bill.
- The Strait of Hormuz carries 20% of global oil exports, while the Gulf region accounts for 29% of global oil, making markets highly sensitive to disruptions.
- In Asia, 40% of oil imports pass through the strait, exposing the region to price shocks.
Walter called the situation “Asia’s Ukraine moment,” noting that even oil-producing countries are affected by global price volatility.
EVs Offer a Strategic Alternative
The study found that replacing oil-based transport with EVs could:
- Reduce global fossil fuel imports by one-third.
- Save approximately $600 billion annually.
“Unlike the oil crises of the 1970s, we now have a viable alternative,” Walter said. “Electric vehicles are increasingly cost-competitive and provide a practical solution to protect economies from oil price volatility.”
Electrification technologies are now available for over 75% of global energy demand, and renewable energy from wind and solar could meet the remaining demand in all countries.
EV Adoption Accelerates Worldwide
- 39 countries now have EV sales above 10%, up from just four in 2019.
- China exceeded a 50% EV sales share in 2025.
- Vietnam (38%), Thailand (21%), and Indonesia (15%) outpaced the US (10%).
- India (4%) surpassed Japan (3%), while Brazil reached 9%.
Economic Impact
- China: Over $28 billion saved annually.
- Europe: Around $8 billion saved.
- India: Approximately $0.6 billion saved per year.
At an oil price of $80 per barrel, savings are expected to grow further as EV adoption increases.
Peak Oil Demand Could Arrive Sooner
The International Energy Agency (IEA) projects global oil demand will peak by 2029, though current geopolitical and market disruptions may accelerate this timeline.
Conclusion
The Ember study emphasizes that EVs and renewable energy are not just environmental solutions, but strategic economic tools. By reducing oil dependence and import costs, electrification can help countries build energy independence, economic resilience, and protection against volatile oil markets.
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