The cost of oil continues to rise, approaching the $100 per barrel mark. Some experts attribute this to the production cuts by the Organization of the Petroleum Exporting Countries (OPEC).
As a result, adoption rates of clean energy and electric mobility are exceeding expectations.
An update to the “Net Zero Roadmap” report by the International Energy Agency (IEA) confirms the current situation.
In a statement received by Mobility Portal Europe, Norbert Rücker, Head of Economics and Next Generation Research at the Swiss private bank Julius Baer, states:
“The energy transition is in full swing and is driven more by market dynamics than by politics.”
He also asserts that the obstacles are not economic or cost-related, but rather “institutions and the rigid structures of the global energy market.”
The progress of electromobility was demonstrated in the latest registration report prepared by the European Automobile Manufacturers’ Association (ACEA).
According to the organization, in August, the market share of battery electric cars in the EU exceeded 20% for the first time, leaving diesel behind once again.
Registrations increased by 118.1%, reaching 165,165 units, representing 21% of the market.
With the exception of Malta, all European Union markets experienced double and triple-digit percentage growth.
Meanwhile, the gasoline market increased slightly by 2.1%, although its market share decreased from 38.7% to 32.7% compared to August of the previous year.
The diesel car market continued to decline in August, down by 6% respectively.
This is also evidenced by the investment decisions of some oil companies choosing to embrace electric mobility.
A clear example is Shell Group with its Shell Recharge line, the first charging network launched by an oil company.
It is evident that in a context where clean energy is expanding, and the demand for fossil fuels is decreasing, there is no need to invest in new coal, oil, and natural gas mines.
The IEA emphasizes the importance of sequencing the reduction of investment in fossil fuel supply with an increase in clean energy investment.
“It is crucial to avoid harmful price spikes or supply gluts,” they assert.
The price of oil falls. Does dependence on China increase?
EU leaders are concerned about China’s growing global influence.
There is a fear that the previous reliance on Russian oil could evolve into a dependency on the supply of electric vehicle batteries from the Asian giant.
It is worth noting that in 2021, the EU relied on Russia for over 40% of its total gas consumption, 27% of oil imports, and 46% of coal imports.
The current result, in the context of the war with Ukraine, is a significant impact on energy prices and rising inflation.
According to a report by the EU, there is a possibility that Europe could become equally dependent on China by 2030.
In this context, Ursula von der Leyen, President of the European Commission, has announced that they will investigate the subsidies offered by the Chinese government to its electric car manufacturers.
This investigation aims to determine whether they are competing on a level playing field with other companies in Europe.
In line with von der Leyen, Valdis Dombrovskis, Vice President of the Commission and responsible for Trade, in an interview with the Financial Times, stated that foreign brands exporting from China will also be subject to investigation.
The arguments presented by Dombrovskis focus on examining whether the industry is receiving unfair assistance from the Asian country.