Impact of Electric Cars on Long Term Oil Price Forecast
Over decades, people never believed that electric cars will dominate the industry and replace gas powered ones. There are so many transformation over two decades on technologies where electric power is highly used. Because technology is adopted in most countries, there is decline in gasoline demand in those countries. 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. However, since by 2025 the demand for electric cars will be high, the prices will be uncertain. Countries like UK have issued international legislation that there will be ban of gasoline cars by 2030.
It is also crucial to know there are short term factors that have influence on changes on oil prices such as political events, global oil supply and more as outline in this website.
Experts have predicted that electric cars will attain the cost parity by 2025 with gas powered cars. The competition on pricing is high and this is causing tension to most car manufacturing companies. The research has determined that electric cars can be able to cover the distance covered by gasoline cars for less than half the price. Thus, countries like UK where gasoline price is high, the demand for electric cars has increased.
The cars that are manufactured nowadays are focusing on sustainability where the materials used are biodegradable. The demand for electric cars has increased since these cars are good when it comes to sustainability and also cost effective. On the other hand, oil companies are now buying electric charging companies so that they can fit the trend and transformation that is there on cars read more now.
Renewables are estimated to offer about 85% of the world electricity comes year 2040. There are countries that use solar power which is cheaper as compared to fossil fuel power. It is important at all times to investigate and now the cost of product of the renewables so that proper decisions can be determined.
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.