“We think the economics of renewables are impossible for oil to compete with.”
Plunging prices for batteries and renewables are driving an electric vehicle (EV) revolution so rapidly that the economics of oil “are now in relentless and irreversible decline.”
That’s the startling conclusion of a detailed new analysis for “professional investors” of the economics of EVs versus gasoline cars produced by BNP Paribas, the world’s eighth largest bank by total assets.
The report is good news for humanity because it means peak oil demand may be less than a decade away, which in turn means ambitious climate goals will be more affordable than previously thought.
But the bank’s analysis, “Wells, Wires and Wheels,” is devastating for Big Oil. It concludes that “the oil industry has never before in its history faced the kind of threat that renewable electricity in tandem with EVs poses to its business model.”…”