The car industry is moving forward with new EV models, governments have set aggressive targets, and consumers are becoming more comfortable with the new technology, bringing about ideal conditions for electric cars to continue to thrive, even with low oil prices.
The Arctic’s strategic importance to Moscow helps explain why Russia is moving ahead so aggressively in the region while the economic case for doing so is questionable
Given the predisposition of German consumers towards consider electric vehicles, the growing popularity of EVs across Europe, and the importance of purchase incentives in driving EV sales, the measure has the potential to spur a dramatic uptick in electric vehicle adoption.
Despite its potential, the Arctic will not likely see large-scale development in the near-to-medium term, if ever. The region’s remote location, lack of infrastructure, harsh conditions, and most importantly, the high-cost of drilling will continue to undermine Arctic oil drilling.
Norway, which produces just under 2 million barrels per day (mbd), is not experiencing the social and political turmoil seen in Iraq, Venezuela or Russia, but it is still taking major hits from the precipitous drop in prices as a result of oil’s integral role in the country’s economy.
Far from being a blessing—oil wealth can prop up dictatorships, slow economic development, and prevent government transparency.