Traditional Vehicle Fleet Will Keep Ground for a Long Time

9 october 2017

The development of e-vehicles in Russia and the world was the key topic of the Energy Bulletin prepared by experts of the Analytical Center.

E-vehicles became a topical issue for strategies of automobile and even oil & gas companies, but the production of batteries reduces savings from abandoning traditional fuels, according to the analysis. "Lower emissions by new petroleum vehicles make their competition with e-vehicles especially interesting. The switch to e-vehicle is generally right, but its global implementation will be more complicated process than optimists think," noted in the Bulletin.

With the growth of the global vehicle fleet to 1.5 bln units by 2030, as expected by the International Energy Agency (IEA), its large part will remain traditional for a long time, believe the specialists. In developed countries, the fleet of vehicles (still expensive) with various electric drives will increase, but traditional fuel-based used vehicles may be popular in developing countries. In Russia, given the quality of roads and the climate, it is important to create a reliable network of charging stations in key tourist lines to give a chance to "pioneers", foreign tourists and "advanced rich men" for long travels in new vehicles, the experts are confident.

The energy efficiency increases in Russia, but there is still a large upgrading potential in the consumption. Its usage may stimulate the industry development due to higher demand for domestic energy efficient equipment. The American oil mining industry has already been working at low oil prices for 3 years, suffered losses, reduced capital investment, but has not left the game. The mining grows with relatively low prices, filling an increase of around 1 mln bl/day per year observed in the global markets. In the current range of fluctuations, the stabilization of prices has a positive effect for economic growth in countries, which are net energy importers, without undermining the world's oil industry. Besides, revenues of oil exporter countries became even. The analysts think that any overproduction or price war in the market may cause a considerable financial damage to them and continue to carefully monitor the relative "balance" in the global energy markets.

For more information, see the Development of E-Vehicles in Russia and the World bulletin.

Other issues of the Energy Bulletins can be found in the section "Publications".