By Reda Cherif, Fuad Hasanov, and Aasim M. Husain, IMF Blog

Filling up at a gas station in California: demand for oil could plummet with the rise of renewal energy (Xinhua/Newscom)

A transportation revolution is underway that could completely transform the oil market in the coming decades.

When oil prices suddenly halved from over $100 a barrel in 2014, our IMF study concluded that supply-side factors such as the emergence of shale and new technologies would be a key force keeping oil prices “lower for longer.” More recent studies suggest that other new technologies, such as the spread of electric cars and solar electricity generation, could even more profoundly affect the oil market and the long-term demand for oil. As Sheikh Zaki Yamani, a former Saudi oil minister, once said, “The stone age came to an end not for a lack of stones, and the oil age will end, but not for a lack of oil.” Den Rest des Beitrags lesen »