Electric Cars and Surging Solar Spell Market Doom for Fossil Fuels
Analyses show how demand for electric vehicles and rapidly falling renewable energy prices could take down oil and gas industry
As an increasing number of nations make plans for banning gas and diesel vehicles within the coming decades, and drivers gain an awareness of the benefits associated with electric vehicles, researchers are prediciting notable consequences for dirty energy sources as the public shifts toward favoring renewable alternatives.
“Post-2025, that’s where electric car sales take off. The further you go into the future, the more it’s electric cars,” Alan Gelder, a senior analyst for the research group Wood Mackenzie, told the Guardian. “If cities began banning cars with a combustion engine, that would rapidly accelerate the switch to electric vehicles.”
Drivers transitioning to electric vehicles out of necessity, because of such bans—which multiple European nations plan to implement in the next 15-25 years—and efforts by governments to increase fuel efficiency regluations, is only part of what is fueling the blossoming electric vehicle market.
Auto manufacturers are also taking cues from the increased demand due to bans and enhanced regulations as well as consumer desire for more environmentally friendly vehicles, as Business Insider detailed in May.
These efforts by governments to limit emissions and by automakers to meet the rising demand for electic vehicles are expected to substanitally impact the oil and gas industry in the coming years.