Why solar power, wind energy and electric vehicles will be the death of the oil industry?

For the same investment, the new wind power and solar energy projects together with electric cars that run on batteries in the future will produce up to seven times more useful energy than gasoline cars with oil prices close to current levels, according to BNP Paribas SA .

Oil will have to fall to between US $ 9-US $ 10 a barrel in the long term for gasoline to remain competitive with respect to clean energy for transportation, and US $ 17-US $ 19 per barrel for diesel, according to Mark Lewis, director global sustainability analysis in the asset management unit of BNP, in a report. US reference crude was trading at about US $ 55 in New York on Monday.

“Our analysis leads to a very clear conclusion for the oil industry: by the same capital outlay today, wind turbines and solar energy will already produce much more useful energy for electric vehicles than oil purchased in the spot market,” said Lewis. “These are impressive numbers and suggest that the renewable energy economy in conjunction with electric vehicles will be irresistible in the next ten years.”

Lewis coined the term “energy return on invested capital” to explain the economics of road transport. It is a measure of the money spent on oil and renewable energy and the differential in its net energy produced when used for mobility, he said.

Still, the changes will take time. «Today’s oil industry enjoys a massive scale advantage over wind energy and solar power of several orders of magnitude: oil supplied 33% of global energy in 2018 compared to only 3% of wind farm and solar energy “Said Lewis.


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