Important Elements to Know Concerning Electric Cars on Bucking 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. There is decline in the gasoline demand in countries that are relying on tech. Since lots of people are nowadays demanding electric cars, it is an indication that there will be change in long term oil price forecast and you can check it out!
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. However, since by 2025 the demand for electric cars will be high, the prices will be uncertain. 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.
There are also short term factors that makes the prices to rapid increase such as the economic development, oil supply and political events.
Experts have predicted that electric cars will attain the cost parity by 2025 with gas powered cars. The competition on pricing is high and this is causing tension to most car manufacturing companies. The cost the gas powered cars will use in a mile will be covered by the electric cars in less than a half the cost incurred and you can view here! 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 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.
The global use of electricity by 2040 is believed that will come from renewables, you can check this site. People have turned to use of solar power because is less expensive and with that concern fossil fuel electricity is less used. 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.
Cite: useful reference