Through the Crystal Ball Part 2

Last week we speculated on what the future might hold for fossil fuels and renewable energy. Now, the P4Capital executive team concludes that discussion with this week’s round table discussion.

Stay tuned.

Transcript


Amanda: And we’re back! Here is part two of through the crystal ball: the future of oil.

Jeremy: So that immediately suggests again that demand for oil will drop due to a technology shift. In fact, if one actually looks at the history of oil as a technology driver it’s less than 100 years old. In most economies it’s less than 75 years old. Which, that breakthrough that Shaheerah noted right now, will change the composition and make up of most trading markets around the world instantaneously as that becomes a commercialized venue for fuel.

Shaheerah: I also wanted to mention some predictions that scientists have made. So currently right now we are in 2015. By 10 years from now, scientists predict that by 2025, methods of converting and storing solar energy will be so advanced that solar energy is actually going to become the primary source of energy on the planet. A company called Tesla has predicted that by 2025, electric vehicles will take over the traditional vehicles we have. Batteries will store more energy in 2025, and batteries will recharge 10 times faster, resulting in electric vehicle fleets that can be used both on the ground and in the air. And so, small-scale commercial aircraft will be powered by light lithium ion batteries. This will actually be the preferred way of short-haul flights.

Jim: And again as a supplements to Shaheerah’s point right now, Tesla is a fine, fine automobile. There are no fossil fuels in Tesla what-so-ever. So how long will it be that one can drive your car from here to 500 km away without worrying about any refuelling. I think that day is within the next year.

Amanda: On a side note here, a car called the Strati is hoping to hit the roads later this year, that’s in 2015. This is a 3D printed car. It takes 24 hours from conception to finished product.

Jim: And when had I talked about the smart manufacturing that in fact is exactly prime example A of what smart manufacturing is. You walk in, you work with a 3D cartographer, and you’re able to come back the next day for your finished product. Mind blowing, is it not?

Archana: It sure seems like we’re living in exciting times, all the data that Shaheerah and Jim just provided to us, I mean it just seems like the amount of technological advances that we’ve made. Obviously, oil is going to become less and less relevant over the coming years. But a recent study by a US government backed energy information administration actually estimated that only about 11% of the world market energy consumption at the moment comes from renewable energy sources, which includes your geothermal, your hydro power, your solar, wind and other sources. BP actually puts this at 9% of world-wide energy consumption in 2013. So just about 9% of worldwide energy consumption was attributed to renewable energy resources in 2013. By estimates, they put this number by, 2040 at 15% of global energy needs coming from renewable energy sources. All these technology advances does make me wonder why has the adoption been so slow. One of the reasons that I, while I was researching this subject, that I can across was the cost of production, storage and the transportation of these bio fuels still remains very high.

Jeremy: There’s another point to be made here about how the future of manufacturing is dependent on oil. To look at it from a different angle that we have, and to quote the movie The Graduate, plastics – the future is plastics.

Jim: Again, somewhat interesting commentary by Jeremy. P4Capital is dedicated to the women and men who work within the trading systems; all sorts of products and monies as they’re being trading. This change in the way fuel is developed into the overall economy will mean dramatic, systematic shifts in the way money is moved around the world. I’m wondering if today’s technologies in the capital markets, and those that have invested in their wealth management portfolios, are quite aware of what’s going on in these changing times.


 

That concludes the P4Capital teams discussion on the future of fossil fuels.  To listen to part one, or just check out some of our other round table discussions, check out our website  at http://www.planet4it.com or follow us @p4capital. Thanks and see you next time.

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