Oil must fall below 20% to compete with green alternatives

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  • Oil must fall below 20% to compete with green alternatives
15 August 2019
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Oil must fall below 20% in order to compete with green alternatives, energy firm Neste are expanding in Singapore to increase renewable and sustainable products and the bunker market is desperate to achieve extended credit lines in 2020..

Oil must fall below 20% to compete with green alternatives: According to BNP Paribas SA, wind and solar power is able to produce seven times more energy for vehicles per dollar, in comparison to oil, but in order for oil to remain competitive with clean-powered vehicles, oil will need to drop between $9-10 per barrel. Global head of sustainability research at BNP said: “Our analysis leads to a very stark conclusion for the oil industry: for the same capital outlay today, wind and solar energy will already produce much more useful energy for EVs than will oil purchased on the spot market.” Click here to read more

“The oil industry today enjoys a massive scale advantage over wind and solar of several orders of magnitude – oil supplied 33% of global energy in 2018 compared with only 3% from wind and solar,” Lewis said.

Bunker market looks for extended credit lines for 2020: Shipowners and creditors are desperate to achieve additional credit to cover the potential rise in low sulfur oil prices. Approximately $4 billion month of extra credit will be needed starting in 2020 to cover the rise. As a result, ship owners are starting to feel the pressure and will need to assess their existing credit lines. A tanker owner commented on the concern, stating: “Securing credit is likely to become more difficult [post 2020], particularly in the case of smaller shipowners who cannot leverage their position with bunker suppliers.” Click here to read more

The swine fever continues to take a toll on China’s pork supply: While China’s pork supply continues to decrease, the demand is unlikely to be filled by the U.S. due to the use of feed additives in U.S. swine population, as well as Chinese import barriers. Other commodities are similarly affected because of China’s decision to halt import of U.S. agriculture products. Click here to read more

 

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