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The oil companies’ hopes for a recovery in demand will not come true. And now let’s talk about what will kill at least 50% of oil companies in the next 10 years.
OIL. WTI
The last nail in the coffin lid will be electric cars. In 2020, all car dealers have sharply reduced sales of new cars. But at Tesla, they have grown. And the company, which until recently was considered bankrupt, has simply blossomed.
However, it is worth looking a little deeper into the situation. For example, the same Volkswagen and Mercedes, against the backdrop of falling sales, this year they sold twice as many electric cars as they did last year. This shows that buyers are not just paying attention to a particular manufacturer (Tesla), but are completely changing their behaviour.
And if other customers are not going to change this model, they will be successfully helped. For example, in the UK, a ban on the sale of cars with a gasoline engine is planned from 2035. Many megacities, due to the environmental situation, will come to this decision even earlier.
The prospects for the oil industry are even more dim when you think about the following. The same company, Tesla, is successfully developing electric trucks, with a huge portfolio of pre-orders. It is the trucks, which work from morning to evening, that consume a huge amount of diesel fuel.
The only reason the majority of the world’s inhabitants have not yet given up on petrol cars is the high price of electric analogues. But this price is decreasing every year. Which is logical. The higher the production volume, the lower the cost.
Let’s imagine that after a few years, the price of a new gasoline and a similar electric car will be the same. What will be the proportion of purchases of the first and second? 50/50? This answer can be given by a person who has never owned a car. The proportion will be 95 by 5 in favour of electric cars. Why? At least because the absence of a petrol engine under the bonnet, as well as the fuel system, makes maintenance much cheaper and generally removes the problem of potentially extremely expensive repair or replacement of the engine.
What awaits us today?
03.00 Trade balance in China for November
08.00 Industrial production in Germany for October
16.00 Ivey Business Activity Index in Canada for November
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