When the CEO of one the world’s largest oil companies says that his new car will be an electric vehicle, one has to wonder about the future of the whole industry. That is exactly what happened this week when the CEO of Royal Dutch Shell said he was trading in is diesel for a new Mercedes electric car. The news comes at a time when oil prices continue to be low on the back of oversupply, and electric vehicle investment and sales are surging.
FINSUM: Our own view has been well-described in this publication, and we continue to stick to it—that electric vehicles and renewable energy are slowly sapping demand for oil, while all the while producers continue to pump too much to meet demand. Thus, we do not think oil prices will ever again recover to their former levels.