Prickly Curmudgeon Smiter
- Jun 28, 2010
The Oil Industry Is About To Become Worthless
There’s a lot of denial and wishful thinking in the oil and auto fields these days, but on the other hand, there are quite a few industry observers who understand that a historic transition is beginning. A recent article in the trade magazine OilPrice.com notes that coal power plants are being retired at “an alarming clip,” and that the EV sector now accounts for a higher stock-market valuation than does the legacy auto industry.
As writer Alex Kimani eloquently puts it, the situation facing oil companies and backward-looking automakers is “eerily reminiscent of the thousands of buggy and whip companies that were rendered obsolete in the early 20th century.” He cites recent research by Morgan Stanley, which argues that selling ICE vehicles will become a money-losing proposition as early as 2030.
There’s a lot of denial and wishful thinking in the oil and auto fields these days, but quite a few industry observers realize and accept the transition.