By Chris at www.CapitalistExploits.at
"We are on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history."
So says Stanford University economist Tony Seba in a detailed report.
The report paints a pretty grim picture for oil bulls, and an even grimmer one for one horse economies such as that of the Saudis, who without oil under their sandals would be largely indistinguishable from the typical inhabitants of downtown Detroit - living in abandoned houses littered with empty cans of Vienna sausages, old beer cans, used needles, and rags stained with things best not mentioned in polite conversation.
"We are on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history. By 2030, within 10 years of regulatory approval of autonomous vehicles (AVs), 95% of U.S. passenger miles traveled will be served by on-demand autonomous electric vehicles owned by eets, not individuals, in a new business model we call “transport- as-a-service” (TaaS).The TaaS disruption will have enormous implications across the transportation and oil industries, decimating entire portions of their value chains, causing oil demand and prices to plummet, and destroying trillions of dollars in investor value — but also creating trillions of dollars in new business opportunities, consumer surplus and GDP growth."
"Oil demand will peak at 100 million barrels per day by 2020, droppingto 70 million barrels per day by 2030. That represents a drop of 30 million barrels in real terms and 40 million barrels below the Energy Information Administration’s current “business as usual” case.
This will have a catastrophic effect on the oil industry through price collapse(an equilibrium cost of $25.4 per barrel), disproportionately impacting different companies, countries, oil elds and infrastructure depending on their exposure to high-cost oil."
- The impact of the collapse of oil prices throughout the oil industry value chain will be felt as soon as 2021.
- In the U.S., an estimated 65% of shale oil and tight oil — which under a “business as usual” scenario could make up over 70% of the U.S. supply in 2030 — would no longer be commercially viable.
- Approximately 70% of the potential 2030 production of Bakken shale oil would be stranded under a 70 million barrels per day demand assumption.
- Infrastructure such as the Keystone XL and Dakota Access pipelines would be stranded, as well.
- Other areas facing volume collapse include offshore sites in the United Kingdom, Norway and Nigeria; Venezuelan heavy-crude elds; and the Canadian tar sands.
- Conventional energy and transportation industries will suffer substantial job loss. Policies will be needed to mitigate these adverse effects.
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