Oil's days as a transportation fuel are numbered because the economics of renewable energy are so compelling, says a new report from BNP Paribas. In order to compete, the oil price would need to be $9-$10 a barrel, says the report's author Mark Lewis, the bank's head of sustainability.
© 2019 Bloomberg Finance LP
The oil industry faces a disruption on the same scale as that which has hit the European utilities sector over the last decade, he adds., introduces the concept of the Energy Return on Capital Invested , focusing on the energy return on a $100bn outlay on oil and renewables where the energy is being used to power cars and other light-duty vehicles .
the oil industry has never before in its history faced the kind of threat that renewable electricity in tandem with electric vehicles poses to its business model. The oil industry has a massive incumbency advantage at the moment – 33% of global energy comes from oil at the moment, compared to 3% for renewables – but that advantage is time-limited to about 15-20 years, because every year, the sector has to invest in new projects to replace lost production and depleted wells.
To meet 2018 levels of energy demand, the oil industry would have to spend $25 trillion a year for the next 25 years, while to produce the equivalent level of energy from renewables would cost on $4.6 trillion - $5.2 trillion, Lewis says.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Iran oil tanker pursued by US turns off tracker near SyriaAn Iranian oil tanker pursued by the U.S. turned off its tracking beacon, leading to renewed speculation on Tuesday that it will head to Syria. The disappearance of the Adrian Darya 1, formerly known as the Grace 1, follows a pattern of Iranian oil tankers turning off their Automatic Identification
Read more »
Low Oil Prices Slam Saudi EconomySubdued oil prices are punishing Saudi Arabia’s economy, threatening the kingdom’s foreign-investment push and curbing potential investor appetite for an Aramco IPO.
Read more »
I Tried Oil Pulling for (Almost) a Week: Here's What HappenedIs oil pulling as good for you as everyone says it is?
Read more »
Oil prices recover some ground, but economic concerns weighOil prices recovered some ground on Wednesday after touching their lowest in clo...
Read more »
Iran to return to nuclear deal only under oil credit line: FarsA senior Iranian official confirmed on Wednesday that Tehran would return to its...
Read more »
Russia's Novak says changes in Saudi oil management won't hurt tiesChanges in the management of Saudi Arabia's oil ministry will not impact co...
Read more »