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Impact of Electric Cars on Long Term Oil Price Forecast
Over decades, people never believed that electric cars will dominate the industry and replace gas powered ones. There are so many transformation over two decades on technologies where electric power is highly used. This is more evident in countries that are using technologies since the demand for gasoline has decreased. Therefore, the use of electric cars has dominated in the market and that is a clear indication that the oil price forecast change as demand shifts.
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. By the year 2025 there will be high demand for electric cars as that is the preferences of most countries and that will have an impact on the oil prices making the cost to remain uncertain. 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!
Some short term factors impacting the oil prices comprise of oil supply, political event and economic development now!
The cost parity will be attained by the 2025 between electric cars and gasoline cars here! The uncertainty of the oil price in the future makes it hard for car manufacturers to make informed decisions. 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. There are countries where the price of gasoline is quite high and with that concern the demand for electric cars is at the peak.
The cars that are manufactured nowadays are focusing on sustainability where the materials used are biodegradable. The demand for electric cars has increased since these cars are good when it comes to sustainability and also cost effective. This global car transformation to electric cars has led to oil companies like shell, total and others to purchase electric charging companies.
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 future of oil cars is that the electric cars are replacing the gasoline cars and for about decades the replacement will decline the use of these cars.
Categories: Auto & Motor