Big Oil Can’t Fight the ‘Irresistible’ Rise of Electric Vehicles — Report

By Paul Brown for the Climate News Network The days of oil as a fuel for cars, whether petrol or diesel, are numbered — because the economies offered by wind and solar energy and other cheap renewables, combined with electric vehicles, are irresistible, a French bank says. BNP Paribas Asset Management calculates that oil majors like Exxon, BP and Shell will have to produce petrol from oil at $10 a barrel (the current price is $58) to compete with electricity on price, while for diesel, it says, oil can cost no more than $19 a barrel. “The oil industry has never before in its history faced the kind of threat that renewable electricity in tandem with electric vehicles poses to its business model,” the bank says. Electric vehicles (EVs) could easily replace 40% of the current market for crude oil. The far lower cost of driving electric vehicles, plus the environmental benefits of cleaner air and the reduction in carbon emissions, will make it overwhelmingly attractive to governments to switch from fossil fuels to renewables for powering the world’s light vehicles. Warnings that Big Oil’s position is precarious have been sounding for several years . Some see the global […]

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