Battery electric vehicles pose a serious threat to the world oil industry, says rating agency Fitch.
In a new report written by the agency, the possibility for electric cars to be more widespread and much faster than people assume could potentially weaken the demand for gasoline, diesel fuel, and crude oil.
– Extensive use of battery-powered vehicles are a serious threat to the oil industry, the report said, according to the newspaper Financial Times.
Fitch notes that battery costs have fallen by 73 percent since 2008. If this trend continues, and the electrical cars will be cheaper than gasoline cars, investors may lose faith in oil companies.
The result could be a “death spiral” in which investors may withdraw funds from the oil industry, according to Fitch, one of the three major international companies who are considering other companies’ creditworthiness.
Source: NTB scanpix / Norway Today