Quote:
Originally Posted by Memphis1979
Thats simply not true. Sooner or later it will match the price of gasoline, think of it this way.
Right now, Electricity is low, Oil prices are high.
As demand increases for Electricity, the price will go up. The more electricity that is being used for cars, means that less oil is being used. As the demand for oil decreases, the price will also decrease.
Sooner or later, those two will reach an equilibrium where the prices will be about the same.
I'm in favor of using electric, its less harmful for the environment, and its home grown power. I'm just pointing out a true fact, that will happen. It may not be in our lifetime, but I think that it will.
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The price of electricity has historically not increased with demand. Over the long haul it's tended to fall as scale economies and technology improves. Such will likely be the future for electricity as wind, solar, and other renewable technologies mature. Further, electric cars are expected to charge at night. Electric utilities could double their energy deliver from the existing plant infrastructure, if they could control when that energy is delivered i.e. at night.
The price of oil and the price of natural gas used to track. They no longer do. For two prices through the force of markets to converge they have to be fungible. There's no credible scenario where gasoline and electricity become replacements for each other. Electricity will simply take market share from oil, but electricity will remain a largely cost-based industry, especially off peak when cars will be recharged.
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