Important Elements to Know Concerning Electric Cars on Bucking 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. There is decline in the gasoline demand in countries that are relying on tech. 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 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.
Some short term factors impacting the oil prices comprise of oil supply, political event and economic development now!
Experts have predicted that electric cars will attain the cost parity by 2025 with gas powered cars. This is creating awe to legacy car manufacturers since there is stiff competition that is in the market today. 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! There are countries where the price of gasoline is quite high and with that concern the demand for electric cars is at the peak.
Sustainability is well considered here as more cars such as BMW i3 are buying up the idea. People are buying electric cars since they are suitable to the environment and also they help one to save lots of money. 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.
It is estimated that by the year 2040 world electricity will be derived from renewables. It is noted that there is great use of solar power which is renewable energy as per the fossil fuel powered electricity, read more here. There is need to do research on the cost of production that seems to be reduced as that helps a lot in decision making and price estimations.
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.