Electric vehicles have many fairly well-known advantages over conventional, petroleum-fueled vehicles. But what most people are yet to realize is the massive energetic advantage an EV can have when powered by renewables vs. a conventional vehicle powered by oil. In fact, an EV powered by wind or solar can deliver six to seven times as much mobility as a typical car powered by gasoline, which would imply that in the long-run oil prices need a drastic drop to remain competitive - for conventional cars to remain an economically viable choice when compared to EVs running on renewables. This would equate to an oil market price that is far, far below the current breakeven price for oil production. In other words, it could be game over for oil demand. In this episode, we take a deep dive into all the numbers involved in this fascinating analysis by a veteran sell-side analyst with BNP Paribas. Oil producers and automakers ignore these findings at their peril.
Mark Lewis is Head of Climate Change Investment Research at BNP Paribas Asset Management. Previously, he was Head of Research and Managing Director at Carbon Tracker, a non-profit company based in London which publishes research on the financial aspects of climate risk. Prior to Carbon Tracker, Mark was Managing Director and Head of European Utilities Research at Barclays (2015-18), Chief Energy Economist at Kepler Cheuvreux (2014-15), and Managing Director and Global Head of Energy Research at Deutsche Bank, where he worked for 14 years until 2013. In addition to his experience as a sell-side financial analyst, Mark spent one year as Deputy Head of investor relations at E.ON at the beginning of the Energiewende, and two years as a credit analyst covering the European utility sector at Standard & Poor’s. In total, Mark has over 20 years’ experience as a financial analyst covering global energy and environmental markets.
On Twitter: @MCL1965
On the Web: Mark’s page at BNP Paribas
Recording date: October 26, 2019
Air date: December 11, 2019
Geek rating: 9