The Link Between Oil and Driving is Weakening
In a recent article, "Big Oil is About to Lose Control of the Auto Industry," Bloomberg L.P. predicts the rise of electric vehicles and the decline of oil consumption. Here are some highlights of the article:
- Oil consumption has been flat for a decade – demand peaked in 2004 and has been falling ever since.
- Plug-in sales have quintupled in the last four years – global sales were 288,500 units in 2014 – and manufacturers are steadily introducing new models.
- EV battery costs have fallen 60 percent since 2010, and analysts at Bloomberg New Energy Finance (BNEF) expect them to keep declining at the same pace, bringing plug-in prices in line with those of legacy vehicles within a decade.
- Investment in biofuels, Big Oil’s preferred “clean” solution, has plunged 90 percent since peaking at $29.8 billion in 2007.
To read the full article, click HERE.