- Mark Lewis is global head of sustainability research at BNP Paribas Asset Management.
- The number of electric cars may be increasing, but there are challenges for charging infrastructure and energy storage.
Oil prices will need to fall to between $10 and $20 per barrel if it is to remain competitive in the mobility sector, according to a recent report from BNP Paribas Asset Management.
The report’s author, Mark Lewis, told CNBC’s Squawk Box Europe Friday that such a view reflected how the economics of renewables were changing “very dramatically” and the way in which electric vehicles were becoming more competitive.
The sun sets on drilling (Image: Pexels)
“We have to be very clear here,” Lewis, who is global head of sustainability research at BNP Paribas Asset Management, added.
“What we’re saying is if you’re comparing investing money in renewable energy in tandem with electric vehicles, you can get six to seven times the energy yield at the wheels – useful energy, mobility – for the same capital outlay as you can spending on oil at the current market price of $60 a barrel, and then refining it into gasoline and using it in an internal combustion engine, which loses 80% of the energy as heat.”
Read more: CNBC