An interesting and inspiring topic for a lazy Sunday afternoon.
Whilst most of the current talk is concerned with the bullish reasons for oil to go higher - e.g. higher demand from global economic growth, limitations and restrictions on new supply, Saudi Aramco’s planned IPO, etc, there are other people with some other views on where we are going price wise.
One such topic is the growth in electric vehicles (EVs) which, if it reaches sufficient proportions could lead to peak in global oil demand in as little as 5 years from now, which could result in oil prices crashing to as low as $10 a barrel. This being based on the fact that about 70 percent of oil is used for transportation.
There was a time not so long back that we heard cries of peak oil. But at that time “peak” was in terms of supply and diminishing reserves no longer capable of meeting continuing demands. But now “peak” is being considered in terms of demand.
It would only take major economies like China and India to commence significant advances in changing to EVs, especially with their current environment pressures, for this impact to be felt. China now being the world’s largest importer of crude…
I had also thought of going electric when I bought a new car last year, but I was still concerned with limited driving range per charge and sparse supply of charging points on the road network - but maybe next time…
