Oil and gas companies have underestimated probable electric vehicle sales and the effect they will have on their own businesses and profits, a new report says. If the car manufacturers’ projections of future sales of electric cars are correct, then demand for oil will have peaked by 2027 or even earlier, sending the price of oil in a downward spiral as supply exceeds demand, says Carbon Tracker (CT), an independent financial think-tank carrying out in-depth analysis on the impact of the energy transition on capital markets. It says fossil fuel companies have taken into account some engine fuel efficiencies and the effect they would have on oil demand, but not the expected increase in electric vehicles themselves. There is a big mismatch between forecasts of EV market penetration from vehicle manufacturers and from oil majors, says Laurence Watson, a CT data scientist.
Climate News Network 5th July 2018 read more »