Over decades, people never believed that electric cars will dominate the industry and replace gas powered ones. There are so many transformation over two decades on technologies where electric power is highly used. This is more evident in countries that are using technologies since the demand for gasoline has decreased. Since lots of people are nowadays demanding electric cars, it is an indication that there will be change in long term oil price forecast and you can check it out!
The effect of the ongoing global pandemic gives a clue on long term oil price forecast that in the coming three years the prices will double. By the year 2025 there will be high demand for electric cars as that is the preferences of most countries and that will have an impact on the oil prices making the cost to remain uncertain. The ban that has been issued by the UK government of gasoline cars by 2030 helps in predicting the future price of oil view here! Some short term factors impacting the oil prices comprise of oil supply, political event and economic development now!
It is now evident that by the year 2025 electric cars will reach the recommended cost parity with gasoline cars. The uncertainty of the oil price in the future makes it hard for car manufacturers to make informed decisions. The research has determined that electric cars can be able to cover the distance covered by gasoline cars for less than half the price. There are countries where the price of gasoline is quite high and with that concern the demand for electric cars is at the peak.
Sustainability is well considered here as more cars are buying up the idea. The choice for electric cars is due to their ability on environmental sustainability and also cost saving. This idea of sustainability has influenced oil companies to buy electric charging companies since by years the oil will be extinct.
Renewables are estimated to offer about 85% of the world electricity comes year 2040. There are countries that use solar power which is cheaper as compared to fossil fuel power. There is need to do research on the cost of production that seems to be reduced as that helps a lot in decision making and price estimations.
The electric cars are encroaching the market and this is a threat to gasoline cars as this service will have an impact on the long term oil price forecast that the prices will decline as the global embrace electric cars.