China's electric car push is shaking up the oil industry
What happened in 2018 that you believe was significant for global oil consumption?
China's vehicle market broke in the direction of electric vehicles [i.e. EV sales went up, despite a drop in overall vehicle sales] in mid-year of 2018, when I was anticipating that might not happen until mid-year 2020. And now that it has broken, it would be a waste of time for people to ponder whether or not internal combustion engines will make a growth comeback in China. The growth prospects for internal combustion engines are over in China.
Why is that significant?
China has a historical record of being able to maximize and supersize and accelerate changes in its economy and its infrastructure based on policy. The United States doesn't have that type of ability to do that. But China does.
I use that as an example of why you should take very seriously China's current initiative on electrical vehicle adoption, which is just insanely aggressive. It would be like taking California policy on electric vehicles and turbocharging it.
No comments:
Post a Comment