The stone age didn’t end because we ran out of stones, the oil era will not end by a lack of oil
This Bloomberg video gives you a comprehensive idea about what is about to happen to the oil industry, just by a small but steady increase of Electric Vehicles (EVs). The impact will be disruptive as well as permanent.
In the second phase, oil will become cheaper and cheaper and some people will even be inspired to keep on using cars with internal cimbustion egines. But then, quite sudden, the price of oil will sky rocket due to two reasons:
- It will become less and less feasible for petrochemical companies to pum up and refine oil. The cost will just be higher than the proceedings and facilities need to be shut down temporarily or definitively. Thus supply will decrease.
- Either due to the above or because of any other geopolitical reason a conflict will develop in regions rich of oil. This will definitely put strain on oil prices, pulling them up as supply deminishes.
One of these factors or both combined would trigger higher demand for EV’s further weakening demand for oil causing a chain reaction.
I expect this to happen between now and 2020.
another video covering this story: