Electric Vehicles Could Soon Reduce Oil Demand By 13 Million Barrels Per Day
By Nick Cunningham
OilPrice.com
Sun, 28 February 2016
Electric cars could upend oil markets much sooner than everyone thinks.
According to a new report from Bloomberg New Energy Finance (BNEF), the rapid decline in the cost of building batteries for electric vehicles (EVs) will make them cheaper than the internal combustion engine in just a few years. By the 2020s, EVs could beat conventional vehicles on price, a shocking development and a potential epochal shift for energy markets.
Battery prices declined by 35 percent in 2015, another impressive feat for the technology as it marches towards both relevance and market share. BNEF believes that EVs – on an unsubsidized basis – will be just as affordable as a car that runs on gasoline…within six years. That means that by 2022, BNEF argues, EVs will reach “the point of liftoff for sales.” The cost-competitive prediction for EVs even assumes that gasoline-powered cars continue to improve efficiency at a rate of 3.5 percent per year.
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