Analysts from Navigant Research are suggesting that oil prices will drop, but for other reasons than an abundance of EVs others have projected on the horizon.
For one, according to Navigant, internal-combustion engines are becoming more efficient. So while Navigant asserts that EVs displaced 2.1 million barrels of oil between 2011 and 2014, a small increase in fuel economy of just 0.08 percent in four years for internal-combustion vehicles would match that.
Navigant also suggests that increasing popularity of car-sharing services like Uber and Lyft could cause a decline in vehicle ownership – and therefore, a decline in fuel consumption. Navigant also points to a possible rise in autonomous cars as something else that would increase efficiency.
Furthermore, Navigant said that if oil prices do drop and remain low, there may be more demand for hybrids, as opposed to EVs, for use in vehicles used by car-sharing services.
In other words, Navigant is seconding Bloomberg’s assertion that the proliferation of electric vehicles will definitely impact the oil market in a way that causes prices to drop and stay low, but it won’t be EVs alone. It will be increases in fuel efficiency across the board and broad shifts in buying and driving habits that do the trick.