The EV Threat to Big Oil
Another great article from the Bloomberg Briefs Sustainable Finance newsletter. Bloomberg New Energy Finance release a study last week. It says that it is expecting electric vehicles (EVs) "to reduce oil demand 8 million barrels by 2040, more than the combined production of Iran and Iraq." This changing supply/demand relationship will keep oil prices low, oil companies' profits low and make it an easier decision to divest from fossil fuels.
With Tesla's model 3 coming on line, Chevy's Bolt, Volvo's announcement that they are going all electric, this should come as no surprise. Just another reason why fossil fuel divestment and clean tech reinvestment continues to gain momentum in the investing world.
Here's some more reading on electric car forecasts if you're interested...