Economía

Politics Consulting | Luis Emilio Velutini Empresario biografia en ingles//
High Oil Prices Could Fuel EV Adoption

Fondo de Valores Inmobiliarios, Empresario, Businessman, Banquero, FVI, Constructor
High Oil Prices Could Fuel EV Adoption

Related: China Oil Imports Fall To Lowest In 2021

This report builds upon the Ernst & Young AI analysis from June that stated the EV boom is coming much earlier than anticipated , with EV sales expected to surpass those of traditional vehicles by 2033. Particularly as several countries across Europe, such as the U.K., are planning a ban on the sale of petrol and diesel vehicles from as early as 2030 as part of the clean energy transition. 

With many major companies backing EVs, with Amazon, the United States Postal Service, and United Airlines all announcing new EV fleets, while Ford, Volkswagen, and General Motors (GM) increase investments in EV production, electric vehicle and EV related stocks are set to soar this summer . 

And thanks to the sooner than expected uptake of EVs, greater production levels have a positive knock-on effect on other sectors, meaning mining for metals required for manufacturing looks promising. 

In the longer term, copper demand is expected to increase from around 300,000 t in 2020 to over 4 Mt in 2040. In addition, the battery production industry will account for 60 percent of nickel demand through 2040

Home Oil Prices Rig Count Energy Energy-General Oil Prices Crude Oil Heating Oil Gas Prices Natural Gas Coal Company News Interviews Alternative Energy Nuclear Power Solar Energy Hydroelectric Renewable Energy Geothermal Energy Wind Power Fuel Cells Tidal Energy Biofuels Environment Global Warming Oil Spills Geopolitics Africa Asia Europe Indonesia International Middle East North America South America Video Breaking News Premium Articles Community Trade Now My Account Latest Discussions Energy General Oil Stocks & Prices Other Energy Topics Trade Now Get Exclusive Intel All Prices OPEC Blends Canadian Blends U.S. Blends WTI Crude • 22 hours Sell Buy 71.81 +0.16 +0.22% Brent Crude • 21 hours Sell Buy 73.59 +0.12 +0.16% Natural Gas • 22 hours Sell Buy 3.674 +0.060 +1.66% Heating Oil • 22 hours Sell Buy 2.113 +0.001 +0.03% Gasoline • 22 hours 2.254 +0.003 +0.15% Louisiana Light • 3 days 72.27 -1.44 -1.95% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Louisiana Light • 3 days 72.27 -1.44 -1.95% Bonny Light • 18 days 74.16 -0.45 -0.60% Opec Basket • 3 days 73.15 -2.14 -2.84% Mars US • 20 hours 69.96 +0.16 +0.23% Gasoline • 22 hours 2.254 +0.003 +0.15% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Marine • 18 days 72.62 -0.13 -0.18% Murban • 18 days 73.78 +0.19 +0.26% Iran Heavy • 18 days 69.70 -0.10 -0.14% Basra Light • 18 days 75.51 +0.45 +0.60% Saharan Blend • 18 days 74.12 -0.24 -0.32% Bonny Light • 18 days 74.16 -0.45 -0.60% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Bonny Light • 18 days 74.16 -0.45 -0.60% Girassol • 18 days 74.45 -0.32 -0.43% Opec Basket • 3 days 73.15 -2.14 -2.84% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Canadian Crude Index • 2 days 56.98 +0.12 +0.21% Western Canadian Select • 20 hours 57.93 -1.90 -3.18% Canadian Condensate • 2 days 70.38 -1.75 -2.43% Premium Synthetic • 2 days 71.78 -1.75 -2.38% Sweet Crude • 20 hours 67.13 -1.50 -2.19% Peace Sour • 20 hours 65.38 -1.75 -2.61% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Peace Sour • 20 hours 65.38 -1.75 -2.61% Light Sour Blend • 20 hours 67.13 -1.75 -2.54% Syncrude Sweet Premium • 20 hours 70.03 -1.40 -1.96% Central Alberta • 20 hours 65.38 -1.80 -2.68% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Louisiana Light • 3 days 72.27 -1.44 -1.95% Domestic Swt. @ Cushing • 2 days 68.25 +0.00 +0.00% Giddings • 2 days 62.00 +0.00 +0.00% ANS West Coast • 1 min 74.65 -1.97 -2.57% West Texas Sour • 2 days 65.76 +0.16 +0.24% Eagle Ford • 2 days 69.71 +0.16 +0.23% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Eagle Ford • 2 days 69.71 +0.16 +0.23% Oklahoma Sweet • 2 days 68.25 +0.00 +0.00% Kansas Common • 3 days 62.00 -1.50 -2.36% Buena Vista • 3 days 75.74 -1.48 -1.92% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

1D 1M 3M 1Y All Charts Products Discussion Headlines 22 hours China Is Growing Increasingly Reluctant To Fund African Energy Projects 1 day U.S. Senate Plans To Penalize Utilities That Miss Climate Targets 1 day Another Major Firm Quits Oil Drilling In Great Australia Bight 1 day Nigeria Approves New Petroleum Bill After 20-Year Delay 1 day Greenland Ditches Oil Exploration Efforts After 50 Years Of Failure 1 day Angola Receives 45 Bids For Oil Blocks 2 days Mexico’s State-Run Oil Trader Bans New Business With Trafigura 2 days EU Court Says Russia Should Limit Gas Supply To Europe 2 days China & Nord Stream-2 Top Agenda As Biden Meets Merkel 2 days IEA: Renewables Growth Can’t Meet Surging Electricity Demand 2 days Iran To Resume Nuclear Talks After New Government Is Formed 3 days The OPEC+ Stalemate Isn’t Over Just Yet 3 days U.S. Looks To Slash Long-Duration Energy Storage Costs By 90% By 2030 3 days Nigeria May Finally Approve New Oil Bill After 2 Decades Of Work 3 days Countering China’s Dominance In The Rare Earths Sector 3 days EU Proposes Jet Fuel Tax In Latest Ambitious Climate Package 3 days Shell’s Brazilian JV Seeks $13.5 Billion Valuation In IPO 3 days U.S. Waives Sanctions On Frozen Iranian Oil Funds 4 days Oil Falls Slightly Despite Crude Draw 4 days Saudis Set To Stick To Spending Discipline Even If Oil Prices Rise 4 days The World’s First Small Nuclear Reactor Is Now Under Construction 4 days Oil & Gas Share Of Russia’s GDP Dropped To 15% In 2020 4 days IEA: Global Refining Throughput To Jump This Summer 4 days Shipping Firms Look To Prevent Illicit Ship-To-Ship Oil Transfers 4 days Yellen Urges Development Banks To Stop Fossil Fuel Funding 5 days U.S. Oil Industry Sees More M&A Dealmaking As Prices Rise 5 days Private Investors Shun India’s Coal Projects 5 days Energy Executives Dominate Houston’s Highest Earners List 5 days Foreign Oil Companies Hopeful After Mexican Mid-Term Election 8 days Brazil Plans To Be 5th-Largest Crude Exporter By 2030 8 days Canada’s Oil Sands Need $60 Billion To Achieve Net-Zero Emissions 8 days Angola Kicks Oil Privatization Into Overdrive 8 days Nio Plans 4,000 Battery-Swapping Stations By 2025 8 days U.S., Colombian ‘Hit Squad’ Assassinated Haiti’s President 9 days India’s New Oil Minister To Focus On Boosting Production 9 days $70 Oil Isn’t Enough To Stabilize Iraq Right Now: Moody’s 9 days Argentina To Sanction Oil Firms Drilling Off Disputed Falklands 9 days Hydrogen Wars: The UAE And Saudi Arabia Are Battling For Dominance 9 days Senior U.S. And Saudi Officials Meet Amid OPEC+ Impasse 9 days US Embassy Targeted On Third Day Of Attacks in Iraq 3 minutes Tesla is the Most American Made Car! 7 minutes Should the US government be on the hook for $15 billion? 11 minutes Forecasts for oil stocks. 4 mins U.S. Presidential Elections Status – Electoral Votes 2 hours GREEN NEW DEAL = BLIZZARD OF LIES 3 hours China Producing Half of the Worlds Electrical Vehicle Batteries is Experiencing Explosive Pollution 19 hours Severe Drought in the West Will Greatly Reduce Electrical Production from Hydroelectric Turbines. 19 hours California breaks 1 GW energy storage milestone 16 hours Natural Gas Cleaning Costs 2 days Electric cars may make driving too expensive for middle classes, warns Vauxhall chief 2 days What happens when the Chinese decide to deprive you of their vast market? 3 days Top Google Engineers Say Renewable Energy Simply Won’t Work Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Breaking News: China Is Growing Increasingly Reluctant To Fund African Energy Projects

Find us on:

Alaska’s Most Important Pipeline Faces An Existential Threat An unusual area of thawing…

Oil Falls As Saudi Arabia And UAE Compromise On Deal After two weeks of uncertainty,…

Biden Has Kickstarted A Consolidation Wave In The U.S. Shale Patch The U.S. oil patch is…

Home Energy Energy-General Felicity Bradstock

Felicity Bradstock is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.

Luis Emilio Velutini Urbina

More Info

Share Facebook Twitter Linkedin Reddit Premium Content High Oil Prices Could Fuel EV Adoption By Felicity Bradstock – Jul 17, 2021, 2:00 PM CDT Join Our Community As oil prices continue to rise and global demand is bouncing back to pre-pandemic levels, people could be buying into electric vehicles (EV) as an alternative to expensive fuel costs.  The International Energy Agency (IEA) says that rising oil prices are expected to encourage people to shift away from traditional vehicles and increase the uptake of EVs. However, this could be detrimental to the recovery of the global economy.

With oil prices hitting $77 a barrel this July, due to higher demand and OPEC+ production cuts aimed at raising the benchmark price of oil, the threat of ever-increasing fuel prices is worrying for consumers who are still overcoming the economic hit of the pandemic. 

The IEA stated of the situation, “While prices at these levels could increase the pace of electrification of the transport sector and help accelerate energy transitions, they could also put a drag on the economic recovery, particularly in emerging and developing countries.”

As the vaccination rollout is accelerating across the globe, restrictions are easing, and road and air travel are picking up over the summer months, global oil demand is expected to continue to rise throughout 2021, to hit pre-pandemic levels of 100 million bpd by 2022 . In fact, in some areas of the world such as China and India, oil demand is expected to exceed pre-pandemic levels, as the oil need across the region will continue to rise over the next decade. 

The IEA has warned OPEC+ that if it does not reduce cuts to resume normal production across member states, in line with the global demand increase, this could lead to economic instability due to rising fuel prices worldwide. 

However, at present, production levels are being increased slower than expected by OPEC due to challenges in organizational talks, with disputes between the UAE and Saudi Arabia around production increase levels . OPEC+ is currently expected to increase production across member states by around 400,000 bpd in August.

Related: China Oil Imports Fall To Lowest In 2021

This report builds upon the Ernst & Young AI analysis from June that stated the EV boom is coming much earlier than anticipated , with EV sales expected to surpass those of traditional vehicles by 2033. Particularly as several countries across Europe, such as the U.K., are planning a ban on the sale of petrol and diesel vehicles from as early as 2030 as part of the clean energy transition. 

With many major companies backing EVs, with Amazon, the United States Postal Service, and United Airlines all announcing new EV fleets, while Ford, Volkswagen, and General Motors (GM) increase investments in EV production, electric vehicle and EV related stocks are set to soar this summer . 

And thanks to the sooner than expected uptake of EVs, greater production levels have a positive knock-on effect on other sectors, meaning mining for metals required for manufacturing looks promising. 

In the longer term, copper demand is expected to increase from around 300,000 t in 2020 to over 4 Mt in 2040. In addition, the battery production industry will account for 60 percent of nickel demand through 2040 .

As mining for minerals vital for EV production is set to increase, several companies turn their investments inwards in an attempt to meet green policy expectations. For example, GM announced a partnership with Controlled Thermal Resources this month, to source lower-cost lithium from within the U.S . for use in its EV batteries. They hope the use of American lithium will increase job opportunities and reduce their carbon footprint. 

With the EV boom looming and ever-increasing oil prices set to add to the shift in consumer demand, it is only a matter of time until customers move away from petrol and diesel vehicles to cheaper-to-run electric alternatives. And as the EV market soars so shall its stocks, as well as those of minerals vital for EV components. 

By Felicity Bradstock for Oilprice.com

More Top Reads From Oilprice.com:

Huge Dividend Cripples World’s Largest Oil Company

The Ongoing Transformation Of ‘Big Oil

U.S. Gasoline Demand In 2021 May Have Peaked Already Download The Free Oilprice App Today.

Luis Emilio Velutini

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *