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. For this reason, the electric cars are in use and this is having an impact in bucking the oil price forecast.
The long term oil price forecast suggests that there will be doubling of price in about three years as the countries recover from the pandemic. 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.
It is now evident that by the year 2025 electric cars will reach the recommended cost parity with gasoline cars. This is creating awe to legacy car manufacturers since there is stiff competition that is in the market today. Amazingly, the electric cars are capable to save a lot on cost since they spend less than half cost for the distance covered by the gasoline cars. Thus, countries like UK where gasoline price is high, the demand for electric cars has increased.
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. The choice for electric cars is due to their ability on environmental sustainability and also cost saving. On the other hand, oil companies are now buying electric charging companies so that they can fit the trend and transformation that is there on cars read more now.
Renewables are estimated to offer about 85% of the world electricity comes year 2040. There are countries that use solar power which is cheaper as compared to fossil fuel power. It is important at all times to investigate and now the cost of product of the renewables so that proper decisions can be determined.
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.