Oil might be sliding down a slippery slope.
The short version:
- A new report from BNP Paribas says that oil would need to be priced at $10-$20 a barrel to remain competitive as a transport fuel.
- As of the writing of this article, oil is $53.87 a barrel.
- Mark Lewis, the author of the report, says, “renewable electricity has a short-run marginal cost of zero, is cleaner environmentally, much easier to transport and could readily replace up to 40% of global oil demand”.
- 36% of crude oil produced goes to fuel vehicles susceptible to electrification.
- “We conclude that the economics of oil for gasoline and diesel vehicles versus wind- and solar-powered EVs are now in relentless and irreversible decline, with far-reaching implications for both policymakers and the oil majors,”
Wow. I encourage all TME readers to click on the link and read this full article. Keep in mind, this article was published by Forbes, not WeHateBigOil.biz.