Technical analysis and trend analysis reveals that Crude oil appears to have peaked forever; it is unlikely that we will see prices of $140 a barrel for a long time if ever. The chart further below seems to also somewhat cement this view illustrating that by 2023, the electric vehicle market could displace another 2 million barrels of oil per day.
The inflection point was hit back in 2013 when 143 gigawatts of renewable energy were added versus 141 gigawatts that came from traditional power plants that burn fossil fuels. In most cases, the cost of solar energy is on par if not cheaper than grid electricity. This is perhaps why the Saudi’s are panicking and want to destroy competition so that they can push prices back up and try to lock in as much money as they can before they are knocked out of the game. They are even planning on selling shares in Aramaco.
“If you look at reports like what OPEC puts out, what Exxon puts out, they put adoption at like 2 percent,” said Salim Morsy, BNEF analyst.“Whether the end number by 2040 is 25 percent or 50 percent, it frankly doesn’t matter as much as making the binary call that there will be mass adoption.”
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