Oil sector at risk from growth in batteries and electric vehicles: report
Anticipated growth in battery technology and electric vehicles (EVs) over the next two decades presents a substantial market risk to the global oil sector, credit rating agency Fitch has warned. In a report issued on Tuesday 18 October, the agency outlined how a “leap forward” in technology could transform the viability of EVs as an alternative to the internal combustion engine. The report said: “This would be resoundingly credit negative for the oil sector, as transport accounts for 55% of oil consumption” while renewables companies could "significantly increase their market share as batteries help solve the problem of intermittent supply". The report advised oil companies to “react early” to the expected growth.