• 35 mins Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 18 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 19 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 20 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 20 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 21 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 22 hours VW Fails To Secure Critical Commodity For EVs
  • 23 hours Enbridge Pipeline Expansion Finally Approved
  • 24 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 8 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 8 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
This Major Political Shift Could Rock Copper Markets

This Major Political Shift Could Rock Copper Markets

Chile’s upcoming Presidential elections could…

Saudi Arabia Looks To Shelve Aramco IPO

Saudi Arabia Looks To Shelve Aramco IPO

Saudi sources have confirmed that…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

OPEC Immune From Early Adoption Of Electric Cars, Says Glencore

Oil Barrels

The low-cost producers in the Organization of Petroleum Exporting Countries (OPEC) will not experience the worst effects of declining oil demand caused by the accelerated adoption of electric cars, according to remarks by the chairman of Glencore on Monday.

The mining company anticipates that while low-cost OPEC members may be relatively unscathed, electric cars will become popular in mass markets earlier than projected by oil industry analysts. The jumpstart in adoption will make minerals such as copper, cobalt and others attractive quickly, while permanently crippling oil prices.

"Historically the view was that oil demand would increase beyond 2040," Glencore Chairman Tony Hayward told journalists at corporate headquarters in Zug, Reuters reports. "With the progress companies have made with electric vehicles, it's quite likely that (peak in oil demand) will come forward. It's probably not very good news for the oil industry and quite good news for the mining industry."

OPEC will meet in Vienna this week to determine the future of output cuts that have sought to reverse the supply glut plaguing markets since the end of 2014. Hayward, who previously headed British Petroleum, said the bloc’s falling production costs will ensure the nations competitiveness in the oil game even as demand peaks.

Related: Oil Prices Rise As Saudis Discuss OPEC Deal Extension With Iraq

"OPEC ultimately has the lowest cost curve in the market and there will be space for it in the market,” said.

Glencore CEO Ivan Glasenberg also bets against oil, according to his remarks at the press event. He sees demand for copper, one of the minerals markets Glencore dominates globally, doubling by 2035 if electric cars reach 90-95 percent market penetration.

In the short-term, OPEC’s oil output cuts are expected to stick around until March 2018, as suggested by Saudi Arabia and Russia last week. The cuts reduced production by 1.2 million barrels per day in the first half of 2017.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News