Impact of Electric Cars on Long Term Oil Price Forecast
No one could ever thought that electric cars will one day replace the gasoline cars. So many changes when it comes to technologies have been experienced and with that regard, electric power has been preferred to fossil fuels read more here. This is more evident in countries that are using technologies since the demand for gasoline has decreased. For this reason, the electric cars are in use and this is having an impact in bucking the oil price forecast.
The effect of the ongoing global pandemic gives a clue on long term oil price forecast that in the coming three years the prices will double. By the year 2025 there will be high demand for electric cars as that is the preferences of most countries and that will have an impact on the oil prices making the cost to remain uncertain. The ban that has been issued by the UK government of gasoline cars by 2030 helps in predicting the future price of oil view here!
Some short term factors impacting the oil prices comprise of oil supply, political event and economic development now!
Experts have predicted that electric cars will attain the cost parity by 2025 with gas powered cars. This is creating awe to legacy car manufacturers since there is stiff competition that is in the market today. Amazingly, the electric cars are capable to save a lot on cost since they spend less than half cost for the distance covered by the gasoline cars. Thus, countries like UK where gasoline price is high, the demand for electric cars has increased.
Sustainability is well considered here as more cars such as BMW i3 are buying up the idea. The demand for electric cars has increased since these cars are good when it comes to sustainability and also cost effective. This global car transformation to electric cars has led to oil companies like shell, total and others to purchase electric charging companies.
It is estimated that by the year 2040 world electricity will be derived from renewables. It is noted that there is great use of solar power which is renewable energy as per the fossil fuel powered electricity, read more here. When you look at the cost of production you can get to know the trend on the use of renewable energy hence investing right.
The electric cars are encroaching the market and this is a threat to gasoline cars as this will have an impact on the long term oil price forecast that the prices will decline as the global embrace electric cars.