Glencore predicts OPEC insulated from electric vehicle impact | Reuters

By Barbara Lewis | ZUG, Switzerland ZUG, Switzerland OPEC nations that deliver some of the lowest cost production will be relatively insulated from an early peak in oil demand caused by any faster-than-expected roll-out of electric vehicles, Glencore's (GLEN.L) chairman said on Monday.Members of the Organization of the Petroleum Exporting Countries meet this week in Vienna to decide whether to extend output cuts to reduce oversupply.Glencore is among the mining companies that anticipate electric vehicles could have a much earlier impact than previously thought, which is beneficial to them as suppliers of copper, cobalt and other minerals, but negative for oil firms.'Historically the view was oil demand would increase beyond 2040,' Glencore Chairman Tony Hayward, who was formerly head of oil major BP (BP.L), told journalists at Glencore's headquarters in Zug.

Reuters May 23, 2017 02:45:05 IST
Glencore predicts OPEC insulated from electric vehicle impact
| Reuters

Glencore predicts OPEC insulated from electric vehicle impact
 Reuters

By Barbara Lewis
| ZUG, Switzerland

ZUG, Switzerland OPEC nations that deliver some of the lowest cost production will be relatively insulated from an early peak in oil demand caused by any faster-than-expected roll-out of electric vehicles, Glencore's (GLEN.L) chairman said on Monday.Members of the Organization of the Petroleum Exporting Countries meet this week in Vienna to decide whether to extend output cuts to reduce oversupply.Glencore is among the mining companies that anticipate electric vehicles could have a much earlier impact than previously thought, which is beneficial to them as suppliers of copper, cobalt and other minerals, but negative for oil firms."Historically the view was oil demand would increase beyond 2040," Glencore Chairman Tony Hayward, who was formerly head of oil major BP (BP.L), told journalists at Glencore's headquarters in Zug.

"With the progress companies have made with electric vehicles, it's quite likely that (peak in oil demand) will come forward," he said."It's probably not very good news for the oil industry and quite good news for the mining industry."Asked whether OPEC still had the power to react to the potential glut in supply, he said expensive deepwater oil and Canadian tar sands, rather than OPEC crude, would be forced out of the market.

"OPEC ultimately has the lowest cost curve in the market and there will be space for it in the market."Glencore CEO Ivan Glasenberg said it was good for Glencore that its portfolio contained little oil and he saw the potential for a doubling in demand for copper.

That is one of the commodities whose supply Glencore dominates, with production of around 1.4 million tonnes, rising to 1.8 million tonnes, when capacity is increased in Democratic Republic of Congo and Zambia in 2018 and 2019. Glasenberg said that if the world manages to achieve a 90-95 percent share of electric vehicles by 2035, that could nearly double world copper consumption from around 23 million tonnes per year now.The International Energy Agency has said it will review its electric vehicle (EV) use and oil demand forecasts after India and China flagged new policies in favour of electric cars and vehicles using other alternatives to gasoline. (Editing by Alexander Smith)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

U.S. job openings rise slightly in September
Business

U.S. job openings rise slightly in September

WASHINGTON (Reuters) - U.S. job openings increased moderately in September and layoffs appeared to abate, pointing to a gradual labor market recovery from the COVID-19 pandemic.

Central bankers seek new role in brave new world
Business

Central bankers seek new role in brave new world

By Balazs Koranyi and Francesco Canepa FRANKFURT (Reuters) - Taking a break from fighting the coronavirus crisis, the world's top central bankers will attempt to resolve the existential questions of their profession this week as they tune into the European Central Bank's annual policy symposium. Having struggled to lift anaemic inflation for years, officials including the heads of the ECB, the U.S. Federal Reserve and the Bank of England will attempt to figure out why monetary policy is not working as it used to and what new role they must play in a changed world - be it fighting inequality or climate change.

Asian stocks extend gains as vaccine hopes support global reopening
Business

Asian stocks extend gains as vaccine hopes support global reopening

By Lawrence Delevingne BOSTON (Reuters) - Asian shares rose on Wednesday as hopes for a successful coronavirus vaccine lifted expectations of a swift reopening of the global economy, which would help the region's heavily trade-dependent markets.