Electric Cars Could Cost the Oil Industry Hundreds of Billions of Dollars by 2025, Report Claims
And by 2050, EVs could take up 69 percent of the transportation market-which could mean big trouble for oil companies.
A rise in electric car popularity could unsettle the oil market and cause a drop of hundreds of billions of dollars from the value of fossil fuel companies within the next 10 years, Bloomberg reports.
If the number of electric cars continues to grow, the demand of around two million barrels a day of oil could drop seriously by 2025. This could lead to similar levels of an oil surplus like what the industry saw over the last three years, Bloomberg reports citing data from Imperial College London and the Carbon Tracker Initiative.
Similar disruptions to the potential EV one caused a $100 billion-plus hit
An event like this would have a similar effect as what the world experienced after the fall of the U.S. coal industry that brought the value of European utilities down $108 billion from 2008 to 2013.
The situation could be worse than the oil industry's 2014-2016 slump that “wiped hundreds of billions off capex,” said Carbon Tracker Institute Spokesman Stefano Ambrogi to Bloomberg.
It all depends how much market share electric cars can grab
Electric cars are on the way to taking up 10 to 21 percent of the transportation market by 2035, Bloomberg reports. By 2050, EVs could claim 69 percent of that same market, while internal-combustion vehicles could be at around just 13 percent.