Report: Increase in oil prices likely to encourage electrification

A new report from Green Car Reports argues that if oil prices were to rise to $150 by 2020, a new era of automobile electrification is likely to follow. Oil prices currently sit around $70/barrel, and if they more than double to the $150 predicted by Bernstein Research, it is likely consumer demand would drive automakers to augment their electrified vehicle lineups.

Eric Everts of Green Car Reports writes of the era of electrification that followed the 2007 oil spike to $147/barrel, “[the] price spike in 2007 was one of the major factors that put electric cars on consumers’ shopping radar… It prompted Nissan CEO Carlos Ghosn to put the original Leaf on the drawing board… If Bernstein’s forecast proves correct [for 2020], it could provide a big boost for electric cars and bolster forecasts showing dramatic growth for electric cars between 2020 and 2040.” Read the full report.

Comments are closed.