Oil & Gas - Expert Speak: Zachary Shahan - The Future is Now!; Sector Update ::Edel

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We had the privilege of hosting Mr. Zachary Shahan, renowned global expert on wind and solar energy, electric cars and energy storage. Mr. Shahan has the distinction of being included among the top 20 eminent world personalities like US President Obama and Elon Musk, among others, for his influence on automotive vehicle efficiency (Source: Appinions, 2013). According to him, following a ~100% fall in cost of energy generated by wind and solar, renewable energy (RE) sources are now competitive, replacing coal, oil and gas. He expects growth from RE to be 4x that of all conventional sources put together. Recent advancements in electric vehicle (EV) batteries and doubling in charging range (i.e., distance covered in a single charge) in coming years will drive rapid growth of EVs, disadvantaging oil. Tesla is poised to double sales in 2016, having already captured 25% share of the US luxury car market within 3 years. Environmental benefits of clean energy and policy actions will further catalyse substitution by RE and EVs.

Solar revolution imminent

Solar panel prices have fallen ~100% (Fig.1) over the past 40 years to USD0.62/watt in 2015 and are expected to dip further by 2/3rds even without a technology breakthrough by 2040. The average unsubsidised levelised cost of solar energy is approaching coal and gas, and is actually lower in many markets, while wind energy is already more competitive than conventional power (Chart 2).

New rule of the road: Go electric!

While driving an EV is far more convenient and fun, improving economics in vehicle batteries production will pave the way for mass scale adoption. Tesla has pioneered the luxury EV space with astonishing car models at competitive prices and initial response has been electric. As per recent cost estimates of new batteries envisaged by General Motor/LG and Tesla, driving EV cars will be far more competitive compared to internal combustion engines (petrol, diesel). Battery breakthroughs and robust charging infrastructure (supercharger network) will set the road for quantum leap in EV.

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https://www.edelweiss.in/research/Oil-And-Gas--Expert-Speak-Zachary-Shahan--The-Future-is-Now-;-Sector-Update/31697.html