A new study published by Stanford University suggests that fossil-fueled cars will vanish within eight years – and citizens will have no choice but to invest in electric vehicles or similar technologies. This is because the cost of electric vehicles – including cars, buses, and trucks – will ultimately decrease, resulting in the collapse of the petroleum industry.
Led by Stanford University economist Tony Seba, the report has caused spasms of anxiety within the oil industry. Entitled “Rethinking Transportation 2020-2030,” it details how people will ultimately switch to self-driving electric vehicles, as they are ten times cheaper to maintain than cars that run on fossil fuels and have a near-zero marginal cost of fuel. Additionally, EVs have an expected lifespan of 1 million miles. In comparison, most fossil-based cars barely last 200,000 miles.
Seba predicts that in less than a decade, it will become very difficult for consumers to find petrol stations, spares or mechanics knowledgeable enough to fix combustion engines. His ultimate premise is that modern-day car dealerships will disappear by 2024 as the long-term price of oil falls to $25 USD a barrel. Those who cling to their outdated cars will probably have to pay to dispose of them in the future, says Seba. In the author’s own words, there will be a “mass stranding of existing vehicles.”
The Sanford researcher is also confident that within the next decade, humans will predominantly rely on self-driving vehicles as they are significantly less dangerous.
“We are on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history,” said Seba. “Internal combustion engine vehicles will enter a vicious cycle of increasing costs. What the cost curve says is that by 2025 all new vehicles will be electric, all new buses, all new cars, all new tractors, all new vans, anything that moves on wheels will be electric, globally.”
The Professor estimates that the “tipping point” will occur in the next two to three years when EV batteries surpass 200 miles and electric car prices plummet to $30,000 USD. By 2022, the low-end models will be sold for as low as $20,000. Following that, it will be the death of big oil.
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