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Can AVs be a solution to the rising oil price?

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The war in Ukraine is changing the world map. The uncertainty of the conclusion is leading to many speculations. The disaster result of the war has been seen in the rising price of crude oil and gas. Can AVs be an alternative solution?

As per the BBC report, the sanctions imposed on Russia due to the invasion of Ukraine saw a rising jump in the oil price. From 24 Feb, the oil prices jumped more than 30%. At one point the cost of the barrel touched $139 (£105). However, the oil prices got settled down $112 a barrel, plunged to 12%.

In response to the rising oil price, the International Energy Agency (IEA), agreed to release 60 million barrels of oil from its reserve. And if required, the need can be met with more release. However, it is not certain enough to meet the huge demand and the settling down the price.

The top 10 oil producer countries ( millions of barrels/day)

AVs top 10 oil producers in a day.
Source: Bloomberg, Data for 2020

With the current scenario of the rising oil and gas price, will EVs and AVs become the best solution? The dependency on oil and gas in the transport sector can be seen clearly. The need for the vehicle running on fossil fuel shows the oil producer to be a leading power.

Any sudden disruption from other countries, hamper the world economy on a major scale. Even if it is far from your hometown. The present scenario shows the interdependencies of each country on each other. 

Even though the paper and survey show some countries to be powerful and dominant players, in reality, rising prices can change the entire world dynamics in the present era.

In such cases, vehicles with alternative drives such as an electric AV can be a supporting solution in the transport sector. Or even in the shipping or logistic era. If the permanent solution and the focus are put more seriously to accept the electric drives as an alternative or parallel situation. A one-third of the world running on the transport division can be supported from any major crisis.

A pure electric AV can support the nations to search for other practical solutions and not just depend on one country for their daily needs. It does release the burden.

Well, it is for sure, the world cannot run without crude oil or gas, it is not a 100% solution, however, if more than 80% of the vehicle industry runs on electric fuel, can change the shape of the world in a more self-dependent rather interdependent.

The trade market has always been a riskier place where the market is questioned, who is leading the game. Even though the battery manufacturers or the raw battery suppliers get the upper hand in electric AVs. However, with alternative drives, the need for fuels can be spread out. It is not needed to be dependent on just one fuel or one country to meet your daily needs.

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