The Organization of the Petroleum Exporting Countries (OPEC) contends that electric vehicles (EVs) will make up just 1% of the market in 2040. However, Bloomberg suggests the shift to electric cars may come much sooner than you think.
As electric cars become faster, safer, cheaper, and more convenient, more people will purchase these vehicles rather than their gasoline counterparts. Bloomberg even states that it’s not unreasonable to project that nearly 50% of the world’s new cars will be electric by 2040. This fundamental shift in the transportation system could start impacting the global oil market over the next decade.
In 2014, the oil and gas industry supplied one-third of Malaysia’s government revenue. If oil continues to play a crucial role in Malaysia economy, this shift could have negative consequences for the country’s economy.
Here is Bloomberg’s Sooner Than You Think video, illustrating the potential impact of electric cars on the oil market.
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