In the long term, Electric Vehicles will impact the price of crude oil, It will not, however, cause oil to crumble in use as is popularly believed in Left-leaning circle jerks.
Today, less than 2 percent of the vehicles Americans buy are electric. But within the next three decades, some automotive industry experts expect electric vehicles could make up the majority of U.S. and global car sales. – citylab.com
- The number of electric vehicles on the road around the world will hit 125 million by 2030, the International Energy Agency forecasts.
If the world switched today to an energy source independent of petroleum for its cars, it would then have to increase the use of natural gas to power it’s electricity consumption that all those new electric vehicles would require.
Yet, Even before the use of electric vehicles has taken off , The Consumption of natural gas set a new record last year, reflecting increased demand from natural gas-fired power producers and bouts of extreme weather, in the past years.
- Natural gas consumption increased 10% last year to 82.1 billion cubic feet per day, according to a new report from the Department of Energy.
- Electric power producers accounted for 35% of the natural gas consumption last year, representing 29.1 billion cubic feet per day.
Projected electricity consumption and electric vehicles
[IMG citylab.com] read more about the increased use of electricity @ citylab.com
What is produced from Crude oil?
Petroleum is an integral part of modern life in terms of the things it is used to make beyond gasoline and other fuels. Objects as diverse as plastics, pharmaceuticals, and cosmetics use various aspects of petroleum as foundations in chemical reactions.
Chemicals, though, are a bright spot. Naphtha – the volatile mix of short hydrocarbons used as feedstock for plastics manufacturing and other petrochemicals – is the only major component of the crude barrel where the IEA expects to see consumption increase, regardless of action on climate change.
Plastics is the next target?.
[img source] read more @ bloomberg.com
As of today, there are few alternatives to crude oil, in use for petrochemical feedstocks, which increasingly differentiates it from the transportation sector. Moreover, government policy has not yet curtailed demand for end-use products.
“In contrast to gasoline or diesel, there are only very few countries with any tax imposed on disposable plastic products,” the IEA said. – energyfuse.org
However, that is beginning to change with corporate decisions to cut single-use plastics such as straws and lids, while taxes and outright bans on plastic bags are proliferating at the municipal and state level. The European Union has proposed a ban on single-use plastic items.
“There is currently a considerable cost gap that bio-based processes need to close in order to be competitive, and it is hard to see this happening without technological advances or breakthroughs,”
A Huge Decline In Oil Replacement Ratio
Oil and gas companies have discovered 7.7 billion barrels of oil equivalent (boe) year-to-date, according to Rystad Energy’s latest global discoveries report.
This means that only 1 bbl out of every six consumed is being replaced by new sources. This is the lowest replacement ratio we have witnessed in the last 2 decades,” Shenga added
For eighth straight session U.S. crude oil keeps going lower
Equities have snapped back from sharp early losses but not so much for crude oil (USO -1.1%), as WTI is on track for its eighth straight down day amid global economic growth slowdown, oil demand and signs of excess supply; November WTI -1.4% to $51.89/bbl. – seekingalpha
Saudi Arabia energy minister Prince Abdulaziz bin Salman says the country has fully restored production after last month’s attacks on its facilities and is now focusing on Aramco’s listing. – fracnews.com
Crude oil markets show support
The $50 level underneath will probably be attempted but a short-term bounce may happen between now and then. The $55 level underneath is massive support, so breaking down below there would not only break the bottom of a hammer. – finance.yahoo.com