Exploring the rise of electric cars and their impact on the global economy, from the auto and power industries to oil and mining sector.
The question has always been will electric cars scrap fossil fuels out of the global market or should we expect another thing. Meanwhile, it seem as if with the rate of technology advancement the love affair between cars and oil might lose its spark.
“Based on forecast, it is deemed that oil demand for transportation could drop to 7million in year 2033-2050”
The growing popularity of electric cars stands to rattle fossil fuel market especially, in advanced nations of the world. However, the outcomes for both oil and gas depends on government policies and EV (Electric Vehicle) incentive scheme.
Merely evaluating both previous and present challenges the oil sector has faced; electric vehicles may hit a fatal blow to the industry Base on my undisputed opinion.
Here are reasons why electric cars may influence the next oil crisis.
growing Electric car adoption would reduce oil demand.
survey according to Statista 2011-2018.
Battery electric vehicles, or BVS, use electricity stored in a battery pack to power an electric motor whereby making the wheels turn; Since they don’t run on gasoline or diesel and are powered totally by electricity.
Tesla vehicles which run mostly on electricity experienced high rise in sales. Meanwhile, about 231,000 all electric vehicles were sold in 2020, down 3.2% in from 2018, EVs acounted for about 2% of of U.S. new car market. With an increasing number of adoption in China, Europe and a slightly lower difference in U.S.
Both independent and oil company forcasters expect that aggressive adoption of electric vehicles would cause oil use for transportation to crumble. Based on forecast, it is deemed that oil demand for transportation could drop to 7million in year 2033-2050.
However, this rely exclusively on government decision.
Gas producers could see opportunities amid transition.
Traditional electric vehicles don’t make use of oil. However, the hybrid electric vehicles are a combination of gasoline and electric vehicle. So this means they have battery and a gasoline tank. Natural gas producers will profit from any transition of electric cars as gas is part of some electric vehicles power dispatch stack, according to analyst at credit research firm.
SOURCE: news-af.feednews.com