Oil companies are engaged in a “race against time” to guard against a huge 40 per cent chunk of their business disappearing over the next 25 years, as declining renewables costs and rising demand for electric vehicles (EVs) effectively kill off the market for petrol and diesel cars. That is the headline conclusion contained in startling new analysis released yesterday by BNP Paribas’s asset management arm, which argues that in only a few years’ time wind and solar will produce more energy for battery-powered EVs at a much cheaper price, than oil will for petrol and diesel cars. The paper argues these shifting economics mean it will soon make little financial sense to produce oil for petrol and diesel cars in the coming decades, when EVs powered by renewables offer a far cheaper, cleaner, and more efficient alternative. Comparing the investment needed at today’s prices to produce oil and renewable energy over the next 25 years, the report found it would cost between 6.2 and seven times more to produce the same amount of energy for a petrol car from oil, than it would to generate renewable electricity from solar and wind for an EV. The equivalent cost for fuelling diesel vehicles, meanwhile, is still around three-to-four times higher than for EVs.
Business Green 6th Aug 2019 read more »