The future is not looking bright for oil, according to a new report that claims the commodity would have to be priced at $10-$20 a barrel to remain competitive as a transport fuel.
The new research, from BNP Paribas, says that the economics of renewable energy make it impossible for oil to compete at current prices. The author of the report, global head of sustainability Mark Lewis, says that "renewable electricity has a short-run marginal cost of zero, is cleaner environmentally, much easier to transport and could readily replace up to 40% of global oil demand".
[...] The report, Wells, Wires, And Wheels... Eroci And The Tough Road Ahead For Oil, introduces the concept of the Energy Return on Capital Invested (EROCI), focusing on the energy return on a $100bn outlay on oil and renewables where the energy is being used to power cars and other light-duty vehicles (LDVs).
"For a given capital outlay on oil and renewables, how much useful energy at the wheel do we get? Our analysis indicates that for the same capital outlay today, new wind and solar-energy projects in tandem with battery electric vehicles will produce six to seven times more useful energy at the wheels than will oil at $60 per barrel for gasoline powered light-duty vehicles, and three to four times more than will oil at $60 per barrel for light-duty vehicles running on diesel," says Lewis.
As fossil fuels phase out, will battery technology improve quickly enough to support the transition to renewables?
(Score: 3, Interesting) by legont on Wednesday September 04 2019, @07:26PM (1 child)
Actually, not exactly. For example, best subs are different (and the US does not have them) https://nationalinterest.org/blog/buzz/these-submarines-are-super-stealth-and-cheap-and-us-navy-doesnt-have-them-55212 [nationalinterest.org]
In general, a design where say hydrogen turbine produces electricity is attractive. Perhaps, it could be swapable with just a battery for some. And not only for moving. My company has it's own fuel cell generation in the middle of the city. It is cheaper than to buy electricity and have diesel backups. It is more reliable as well.
What most people don't release is that the best solutions will kill the grid and as such are very bad for community in the beginning. Transition is tough. It would be way easier if only new applications use new energy sources for a foreseeable future.
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.
(Score: 2) by HiThere on Wednesday September 04 2019, @08:51PM
For a sub, and given that you have hydrogen, wouldn't a fuel cell be a better choice? Isn't it a lot quieter?
Javascript is what you use to allow unknown third parties to run software you have no idea about on your computer.