Oil production costs must fall to $10-20 per barrel for petrol and diesel to compete effectively against renewable power in the transport sector, a new report has claimed. BNP Paribas Asset Management said the economics of petrol and diesel-powered vehicles is now in “relentless and irreversible decline, with far-reaching implications for both policymakers and the oil majors.” The analysis focused on the amount of energy that can be produced for each unit of capital invested. Assuming an oil price of $60 per barrel, the report said wind and solar installations powering electric vehicles (EVs) can produce six to seven times as much as “useful energy at the wheels” when compared to petrol. They can also produce three to four times as useful energy as diesel.
Edie 6th Aug 2019 read more »
Business Green 6th Aug 2019 read more »
According to a new report by BNP Paribas Asset Management, renewables offer more advantages than simply mitigating climate change. Electricity is easier to transport than oil, and wind and solar electricity prices are much more stable than volatile oil prices. An analyst from the French bank argues that major producers will need to reduce oil prices below $20 to compete with clean energy in the transport sector.
PV Magazine 6th Aug 2019 read more »