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. 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 long term oil price forecast suggests that there will be doubling of price in about three years as the countries recover from the pandemic. 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.
Some short term factors impacting the oil prices comprise of oil supply, political event and economic development now!
The cost parity will be attained by the 2025 between electric cars and gasoline cars here! The uncertainty of the oil price in the future makes it hard for car manufacturers to make informed decisions. The research has determined that electric cars can be able to cover the distance covered by gasoline cars for less than half the price. There are countries where the price of gasoline is quite high and with that concern the demand for electric cars is at the peak.
The cars that are manufactured nowadays are focusing on sustainability where the materials used are biodegradable. People are buying electric cars since they are suitable to the environment and also they help one to save lots of money. This global car transformation to electric cars has led to oil companies like shell, total and others to purchase electric charging companies.
Renewables are estimated to offer about 85% of the world electricity comes year 2040. People have turned to use of solar power because is less expensive and with that concern fossil fuel electricity is less used. 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.