According to Bloomberg, BYD unveiled a new hybrid powertrain capable of traveling more than 2,000 kilometers (1,250 miles) without recharging or refueling. It would be a game changer for the auto industry. But it could be a significant change for oil companies like us. Your thoughts?
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China can build and sell an electric car for a fourth of the cost as America and they have copious amounts of rare earth metals like cobalt. Biden just place a 100% tarriff on China and Elon came out against the tariff. China's electric cars market will explode and we will see lots of political posturing around this topic in the future as other counties benefit from cheaper cars. My prediction is that electric car phads die down some as the industry learns another lesson that oil and gas is the way to go for now.
In the meantime, we have under invested in hydrocarbons over the last 10 years and the pendulum is swinging back making it a good time to be in oil and gas. Just look at where the money is starting to flow as oil and gas companies push back against woke green investors.
I have zero worry about any of this majorly affecting oil demand.