October 19, 2016

IT'LL NEVER FLY, ORVILLE:

Batteries May Trip 'Death Spiral' in $3.4 Trillion Credit Market (Brian Parkin, October 18, 2016, Bloomberg)

Battery technologies starting to disrupt the electricity and automobile industries may also emerge as a trillion-dollar threat to credit markets, according to Fitch Ratings.

A quarter of outstanding global corporate debt, or as much as $3.4 trillion, is linked to the utility- and auto-industry bonds that rely on fossil fuel activities, the ratings agency wrote in a report published Tuesday.

Batteries have the potential to "tip the oil market from growth to contraction earlier than anticipated," according to Fitch. "The narrative of oil's decline is well rehearsed -- and if it starts to play out there is a risk that capital will act long before" and in the worst case result in an "investor death spiral." [...]

Battery prices fell 35 percent last year and are on a trajectory to make electric vehicles as affordable as their gasoline counterparts over the next six years, according to Bloomberg New Energy Finance. 

Provided rapid renewable energy improvements continue, along with adoption of electric vehicles and other disruptive technologies, petroleum consumption will peak in 2030 and decline thereafter, the World Energy Council said in a report this month.

Posted by at October 19, 2016 3:47 PM

  

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