The world oil price is always a cause for instability. It’s not good when it’s extremely high and it’s not really that awesome for many oil producing countries when it goes too low. Despite the fact that demand for oil CANNOT suddenly go up or go down within days, the oil price can still fluctuate A LOT every day or every few days. How about if someone were to tell you that the demand for oil will stagnate as early as 2020? In other words, it should no longer be growing! Perhaps by then the price for oil will be much more stable? By then, we do not need to worry about any fluctuations in petrol prices? We can then save even more and we can buy our property even faster! 🙂 Hmmmm…..
Are you driving a hybrid car today? One that tells you NOT to drive above 55km per hour, else it will start the petrol engine? Haha. To those driving full-electric car today, you may be changing the world for better and worst. Better because the environment should be cleaner with lesser pollution. Worst for oil companies because you may be playing a part in making their lives even more difficult. Anyway, it was reported here that within a decade, oil companies may face a half in growth of oil demand beginning as early as 2020! It says that the prices of electric cars and renewable technology is going to weaken the demand for petrol. The report gave many details but this is the most significant. Electric cars will account for a third of the road transport by 2035. The report was jointly issued by financial think tank Carbon Tracker and the Grantham Institute, both in London.
Oil and gas giant BP meanwhile just predicted last week in its 2017 Energy Outlook that oil demand from cars would continue to rise well into the mid-2030s. By 2035, electric vehicles will only be making up 6 percent of the global car fleet. If it’s just 6 percent, then the demand for oil will still be very strong and all oil companies should continue to do well. (OR they can buy more renewable energy companies in preparation for that day)
Before we start debating on whether it’s around 30 percent or 6 percent, there’s another forecast which was issued by Bloomberg New Energy Finance. It estimated that electric cars will account for a 22 percent market share by 2035. 22 percent is still a very significant number and it’s over 3 times higher than what BP has predicted. Anyway, when we google for news about oil and gas companies together with renewable energy, it shows that many of them are already moving into renewable energy. Two examples here: Moving towards renewable energy as well as Exxon, a renewable energy company? So, perhaps a more likely scenario is that we will start to enjoy these electric cars when the oil and gas companies are also pushing for it, somehow in the future. Personally, I will join the electric car crowd only when the charging stations are aplenty. For now, to save the world, I will only buy energy efficient electrical goods. Happy driving whatever car that you own today.
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written on 4 Feb 2017
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