Report Shows Growth of EVs Could Tank Oil Market

A new Bloomberg report suggests that the next wave of electric vehicles may help keep oil prices low.

“It’s looking like the 2020s will be the decade of the electric car,” says a report titled “Here’s How Electric Cars Will Cause the Next Oil Crisis.”

That next wave of vehicles includes the upcoming Chevrolet Bolt and Tesla Model 3, both of which are expected to be priced after potential subsidies or credits around $30,000 or less, and offer over 200 miles of range.

On top of that, says the Bloomberg, Ford, Volkswagen, Nissan, and BMW are among the automakers making heavy investments in EVs, and tech companies like Apple and Google are working on the development of EVs, as well.

SEE ALSO: Why Big Oil Is Worried About EV Batteries and Tesla

Oil-industry interests such as OPEC and Exxon predict that the electric car market will be at just 1 percent by 2040.

Yet electrified car sales were up 60 percent globally last year, according to Bloomberg.

Additionally, the oil market has been producing 2 million barrels a day more than the market can support, according to the report.

SEE ALSO: OPEC: Oil Prices Will Reach $200 A Barrel

Bloomberg posits that if a surge in demand for electric vehicles creates an oil reduction of another 2 million barrels a day, that would create a glut in the market, and it could happen as soon as 2023.

This is all part of a new Web series by the publication that examines technological transformations that haven’t happened yet but might soon.

Bloomberg is predicting that the decade of the 2020s will be big for EVs, as battery prices fall. Unlike the oil interests, Bloomberg is projecting that by 2040, 35 percent of new vehicles will have a plug. Today, plug-in cars account for just one-tenth of 1 percent of the global vehicle market.