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Wednesday, March 2nd, 2016

Electric Vehicles Could Soon Reduce Oil Demand By 13 Million Barrels Per Day

Author:     Nick Cunningham
Source:     Oilprice
Publication Date:     Sun, 28 February 2016 00:00
 Link: Electric Vehicles Could Soon Reduce Oil Demand By 13 Million Barrels Per Day
Stephan:   Here is some more good news. The shift to electric vehicles is going faster than anyone projected, and the benefits are already coming into focus. My prediction is that China will come to dominate the electric vehicle market because American companies are simply too in the bag to oil, too committed to their existing infrastructure, too intertwined with the past to seize the opportunity properly. It will mean millions of jobs blossoming in China instead of the U.S. But it will also mean a significant reduction in carbon emissions, as this article describes.
Chinese electric car Credit: USAToday

Chinese electric car
Credit: USAToday

Electric cars could upend oil markets much sooner than everyone thinks.

According to a new report from Bloomberg New Energy Finance (BNEF), the rapid decline in the cost of building batteries for electric vehicles (EVs) will make them cheaper than the internal combustion engine in just a few years. By the 2020s, EVs could beat conventional vehicles on price, a shocking development and a potential epochal shift for energy markets.

Battery prices declined by 35 percent in 2015, another impressive feat for the technology as it marches towards both relevance and market share. BNEF believes that EVs – on an unsubsidized basis – will be just as affordable as a car that runs on gasoline…within six years. That means that by 2022, BNEF argues, EVs will reach “the point of liftoff for sales.” The cost-competitive prediction for EVs even assumes that gasoline-powered cars continue to improve efficiency at a rate of 3.5 percent per year.

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The report projects that EVs will […]

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