RethinkX co-founder and Stanford University economist and professor Tony Seba told CNBC’s “Street Signs” that the rise of self-driving cars will see oil demand plummet, the price of that commodity drop to $25 a barrel, and oil producers left without the political or financial capital they have today.
“Oil demand will peak 2021-2020 and will go down by 100 million barrels, and will go down to 70 million barrels within 10 years. And essentially what that means is that the new equilibrium price in the oil markets is going to be $25. So if you produce oil and you can’t compete at $25, essentially you are holding stranded assets,” Seba said.
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