Another Oil Crash Is Coming, and There May Be No Recovery
Superior electric cars are on their way, and they could begin to wreck oil markets within a decade.
It’s time for oil investors to start taking electric cars seriously.
In the next two years, Tesla and Chevy plan to start selling electric cars with a range of more than 200 miles priced in the $30,000 range. Ford is investing billions, Volkswagen is investing billions, and Nissan and BMW are investing billions. Nearly every major carmaker—as well as Apple and Google—is working on the next generation of plug-in cars.
This is a problem for oil markets. OPEC still contends that electric vehicles will make up just 1 percent of global car sales in 2040. Exxon's forecast is similarly dismissive.
The oil price crash that started in 2014 was caused by a glut of unwanted oil, as producers started cranking out about 2 million barrels a day more than the market supported. Nobody saw it coming......
The Fut
- The Future.... of Oil
It is predicted that by the year 2020
Oil markets will have a surfeit of plenty
And the ensuing glut
Will be a punch in their gut.
For electric cars with more allure.
are the automotive future
and mere gasoline guzzlers will have no defense
against their more beguiling styling and intelligence.
Well that I hope I'll be around to see
because by then I'll be 93
and rather than worrying about a car's modernity
more concerned with finding transport to eternity.
And so, with a minimum of chrome,
I'll now end this poem.
HzL
2/24/16
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