Peak oil and electric car
Peak oil theorists say that the world’s production of oil is coming to a peak and therefore oil prices should go higher as demand for oil grows as developing countries join in the rat race.
I beg to differ. Peak oil theorists may be right in saying oil production is reaching maturity (i am no expert on that) but if electric cars are widely adopted in the next 10-20 years, the demand for oil will slow down. This implies that long term oil price may need not go much higher.
More and more auto companies are coming up with electric cars. Although still not perfect in design and the charging network yet to be fully constructed, the environmental friendly electric car looks to be the answer to gasoline car.
However, this raises a new problem. Lithium batteries are in vogue for use in electric cars, but half of lithium is found in bolivia and if all the cars convert to electric, there might be not enough lithium to go around, so the price of lithium will be driven sky high. (some lithium mining companies shares have gone sky high too).
But rest assured, the technological prowess and money-making nature of human beings will find a substitute if lithium prices are way too high. To attract people to buy electric cars, the battery price must no be too high. If more and more companies engaged in the production of batteries for cars, it would lower the price of batteries.
Well, i am going too far ahead into the future but i am excited at the prospect of electric cars becoming a dominant feature of tomorrow’s world. Trust the market to prevent global warming.
Entry filed under: Watch your step.