• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 6 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 12 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 4 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 6 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 7 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Gazprom Exports to EU Hit Record
  • 4 hours Oil prices going down
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 1 day Oil Buyers Club
  • 5 hours Saudi Arabia turns to solar
  • 1 day EVs Could Help Coal Demand
  • 2 days China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 days Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 22 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Shale Shifts Attention To This ‘Forgotten’ Oil Play

Shale Shifts Attention To This ‘Forgotten’ Oil Play

As the Permian becomes overcrowded,…

Russia Pushes Ahead With Controversial Nord Stream 2

Russia Pushes Ahead With Controversial Nord Stream 2

Russia’s controversial Nord Stream 2…

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