Opportunities and risk for investors in the energy transition are driven by increased energy demand, a changing energy mix and the need for energy-efficient solutions to address climate change.
With 36% of demand for crude oil today coming from light-duty vehicles and other vehicle categories susceptible to electrification, and a further 5% from power generation, the oil industry has never before in its history faced the kind of threat that renewable electricity in tandem with electric vehicles poses to its business model: this is a competing energy source that:
As this infographic illustrates, if we were building out the global energy system from scratch today, the economics alone would dictate that at a minimum, the road-transportation infrastructure would be built up around electric vehicles powered by wind and solar-generated electricity.
In our view , the economics of oil for petrol and diesel vehicles versus wind and solar-powered electric vehicles are now in relentless and irreversible decline, with far-reaching implications for policymakers, the oil majors and investors.
 Click here to read our research paper on the topic: Wells, Wires, and Wheels – EROCI and the Tough Road Ahead for Oil
This article appeared in The Intelligence Report – 18 September 2019