Impact of Electric Cars on Long Term Oil Price Forecast
It was unbelievable that electric cars would replace gas powered cars decades ago. It is crucial to note here that over decades, electric power has been in great use due to the changes that are there in technologies. This is more evident in countries that are using technologies since the demand for gasoline has decreased. Therefore, the use of electric cars has dominated in the market and that is a clear indication that the oil price forecast change as demand shifts.
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. Some countries will get to experience uncertainty on gasoline prices as electric cars will be demanded in large numbers by 2025, click for more here. 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!
There are also short term factors that makes the prices to rapid increase such as the economic development, oil supply and political events.
The cost parity will be attained by the 2025 between electric cars and gasoline cars here! This is creating awe to legacy car manufacturers since there is stiff competition that is in the market today. The cost the gas powered cars will use in a mile will be covered by the electric cars in less than a half the cost incurred and you can view here! Besides, it is vital to understand that countries where the price of gasoline has increased such as Norway and more the demand for electric cars is high to save on cost and you need to learn more here.
Environmental conservation is the global idea and that has led to so many car manufacturing companies to adapt the idea and use materials that are sustainable to the environment, view here. 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. There is need to do research on the cost of production that seems to be reduced as that helps a lot in decision making and price estimations.
The use of electric cars will eventually take over the market, and this will lead to decline on long term oil price in the future as more people will prefer using electric cars than gas powered cars.