China’s electric car push is shaking up the oil industry

CBC News
Gregor Macdonald James Alexander Michie

(Gregor Macdonald)

For some 2018 was a crucial year in the global transition to cleaner energy, as well as for Gregor Macdonald, who is an American journalist. Macdonald has a new e-book, Oil Fall, in which he talks about how changes in China are having an impact on the oil industry.

And it is considered that China’s electric car is shaking the oil industry. In fact, in the Chinese vehicle market, sales of electric vehicles increased, despite a drop in overall vehicle sales. This was in mid-2018 when he anticipated that this might not happen until the middle of 2020. The growth prospects for internal combustion engines have ended in China.

It needs to be said that over time, China has had a history of being able to maximize and increase the size and accelerate changes in its economy and infrastructure. This based on policies. While for its part, the United States does not have that kind of ability to do that.

Forecasts for demand growth

It is already well known that the prices of raw materials are very sensitive to marginal changes in growth rates. In addition to this, it is really important for the oil industry, for Alberta, that the market expects demand to be a little higher next year. Why? Because that way this would keep the pressure on prices. And it has been said that possibly at the moment when the global oil market discovered what began to develop in China in late summer, the world oil market had to begin to change the price of future oil demand.

Likewise, the world oil industry has been living in the perspective of further growth in Asian demand. However, China really is not very common that can be said since copper or gold rose or fell according to a single factor. But I will express some confidence here and say that the break-in oil growth for China changed the forecasts for the growth of demand.

It should be noted that China is not the only country in the world that has the ability to kick the path of global energy in one direction or another. In fact, India can do it too. In fact, they have cleaned up the coal industry a bit and have also supported it, to the consternation of the global climate community, which is fully recognized.

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Source: WHAT ON EARTH? | CBC NEWS

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