Opportunity Beckons !

Petrol is selling for less than a dollar a litre and it may go a lot lower.  This Coronavirus that has taken cars off the road across the world has created an oil glut and the oil world is desperately seeking storage for the product they can no longer sell.   Rusty old oil tankers which have long passed their days at sea are being used as storage depots and the oil companies are rapidly running out of space.

Unfortunately, the blessing of cheaper petrol prices will slow the market share of electric cars and their hybrid cousins.  For once, the oil majors are showing a degree of conformity in cutting back on production, but oil is the lifeblood of their economies and the rich rewards have been used to keep their subjects passive.  Most of the big oil producing countries have restrictive governments that rule with an oppressive use of power. There are no guarantees when the money runs short.

All this comes at a very bad time.  Electric cars are quickly closing the gap on the distance they can cover on battery power compared to the internal combustion engine and recharge time is getting ever shorter.  Once they go to mass production the selling price will drop dramatically and there was every reason to believe that was about to happen.  Cheaper petrol is simply giving the internal combustion engine an extended life span.

This global warming question has become imperative.  We need to burn less fossil fuels - and that means oil and coal.  Wind and solar are fast driving coal fired electricity generation out of business in the developed world and should we change to electric cars our reliance on oil would take a similar hit.  For the first time the opportunity to do something to reduce the mount of carbon dioxide in the atmosphere is within our reach and if this Coronavirus had not blundered onto the scene it would probably have happened.

The conversion of electricity generation from coal fired power stations to renewables depends on government decisions.  The decision on what type of car they drive is entirely up to car owners and the big car companies are watching the public mood before making a decision.  They are not going to convert to mass production of electric cars until they are confident that they have the shape that people will buy and clearly the public mood is towards SUV's.  Unfortunately, " big and roomy family carriers " are better suited to petrol or diesel engines.

The " right car at the right time " can swing market share as Ford established when it introduced its " Mustang " many years ago.  It awaits a brave and resourceful car maker who converts the production line with a smart, family sized electric car at the price that compares with the present crop of petrol vehicles.

The government would be smart if it enhanced that prospect by changing the registration and taxing regime to favour electric vehicles, as is fast becoming necessary if we are to achieve sanity in commuter numbers on the road at peak.  The electric car will not eliminate global warming, but it is the only practical measure that will have a compound effect on the amount of C02 we generate.  It is also the only measure that is within our power to change by consensual public choice.

All other methods involve law changes and draconian penalties that breed public hostility.  The government would be wise to put its shoulder behind the electric car wheel  !