Economics
Oil Needs to Fall Below $20 to Compete With Green Alternatives
- Renewables, EVs to prove irresistable for investors, BNP says
- Oil still has ‘massive’ scale advantage over solar, wind
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Wind and solar power can produce seven times more useful energy for cars, dollar for dollar, than gasoline with oil prices near current levels, according to BNP Paribas SA.
Oil will have fall to $9-$10 a barrel in the long-term in order for gasoline cars to remain competitive with clean-powered electric vehicles, and to $17-$19 a barrel for diesel, Mark Lewis, global head of sustainability research at BNP’s asset management unit, said in a research report. U.S. benchmark crude was trading at about $55 in New York on Monday.