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BNP Paribas Says The Party Is Over For Oil Companies....... Now a new report entitled Wells, Wires, And Wheels from French investment bank BNP Paribas comes with this stunning announcement —
“We conclude that the economics of oil for gasoline and diesel vehicles versus wind- and solar-powered EVs are now in relentless and irreversible decline, with far-reaching implications for both policymakers and the oil majors.” ........
BNP Paribas is the world’s 8th largest bank in terms of total assets. The lead author of the report is Mark Lewis. Before joining BNP Paribas in January, he was head of research at the Carbon Tracker Initiative, head of European Utilities Research at Barclays, chief energy economist at Kepler Cheuvreux and head of energy research at Deutsche Bank.
The report introduces a new concept called Energy Return on Capital Invested or EROCI, which allows a comparison of the energy yielded from a given level of investment in different energy sources. Its primary thrust is taking a look at the transportation sector, although its findings apply to all sectors in which fossil fuels are a significant factor. ....
.... The report says, “We define net energy as the amount of energy that does useful work after taking in to account all energy-transportation and energy-conversion costs and losses. What we are most interested in is how much a given capital outlay on oil and renewables translates into useful or propulsive energy at the wheels: in other words, for a given capital outlay, how much mobility can you buy?”
Here’s one example of the shocking news contained in the report: “We calculate that for the same outlay on these different energy sources (wind and solar), oil would have to trade at $9/bbl to yield as much useful energy for gasoline-fueled long distance vehicles as offshore wind would yield in tandem with EVs, $10/bbl for as much useful energy as onshore wind in tandem with EVs, and $10/bbl for as much as useful energy as solar-PV in tandem with EVs.” ......
https://cleantechnica.com/2019/08/12/bn ... companies/