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. Because technology is adopted in most countries, there is decline in gasoline demand in those countries. For this reason, the electric cars are in use and this is having an impact in bucking the oil price forecast.
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 other thing that is used in forecast here is the ban of gas powered cars in the UK as that will affect the prices of oil.
It is also crucial to know there are short term factors that have influence on changes on oil prices such as political events, global oil supply and more as outline in this website.
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 research has determined that electric cars can be able to cover the distance covered by gasoline cars for less than half the price. Thus, countries like UK where gasoline price is high, the demand for electric cars has increased.
Sustainability is well considered here as more cars such as BMW i3 are buying up the idea. The demand for electric cars has increased since these cars are good when it comes to sustainability and also cost effective. This idea of sustainability has influenced oil companies to buy electric charging companies since by years the oil will be extinct.
Renewables are estimated to offer about 85% of the world electricity comes year 2040. It is noted that there is great use of solar power which is renewable energy as per the fossil fuel powered electricity, read more here. 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.