Electric cars have a big impact on the black gold market. It would seem that the more electric cars that use electric batteries instead of gasoline, the lower should be the price of oil. But not all so simple - based on AMarkets.
In the long term, replacement of electric transport of traditional machines running on petroleum products, and, although leading to a gradual decline in oil prices. However, in the short and medium term, everything is different - says Dwight Anderson, the legendary "King of the raw material" and co-founder of the fund Ospraie Management. The expert believes electric vehicles will have an upward impact on the oil market before the end of the current decade. Logic about this: the large oil projects, producing 100-500tys.barrels of oil per day, costing on its implementation in the many billions of dollars - these billions must be spent before the project begins to generate hundreds of barrels of oil daily. And development can take years. And if oil demand will steadily fall, large-scale projects no one will sell. Fools in the oil sector there. Oil supply will decline sharply. Despite the fact that electric vehicles will displace conventional vehicles rather slowly. People are conservative and will not dramatically change to "battery" to replace cars on traditional fuel.
If we talk about reducing the number of large oil projects, they tightened the monetary amount of 65% (for investments in CAPEX), if you count from the beginning of the oil crisis, when the price began to sink much without returning to previous levels.
The bottom line - the expert says that any reduction in demand for oil due to some external factors (such as the expansion of electric segment ) will contribute to a sharp reduction in the volume of projects and production of oil. After that, the price will naturally rise due to constricted supply. At least in the first decade until they find alternatives to petroleum raw materials in the right quantities. Alternatives in the right amount and can not find a word to say.
