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: 2, Informative) by Anonymous Coward on Wednesday September 04 2019, @09:47PM
Different vehicle classes, different situations. If you can't tell the difference in role between a Class 8 highway bulk haulage system, and an in-city light vehicle, then you don't even understand what the original article was about.
100 miles for a package van is unimpressive. For many current industry purposes, it's utterly inadequate.
500 miles for a semi is unimpressive. For many current industry purposes, it's utterly inadequate.
A package van is not capable of taking the role of a Class 8 semi, and trying to pretend that they're equivalent is just showcasing your own ignorance.