National Bank of Abu Dhabi: Oil Can’t Compete With Renewables

Solar is the future of the Middle East.
Solar is the future of the Middle East.

That’s quite an admission, coming from the oil barons of the emirates.

Among the report’s [surprising] findings are that fossil fuels are already uncompetitive with solar in terms of price, and that would be true even if oil fell as low as $10 a barrel. And with the supply of fossil fuels finite and increasingly difficult to extract, the bank believes that almost all future investments will be in renewables.“Prices have fallen dramatically in the past few years: solar PV falling by 80 percent in six years, and on-shore wind by 40 percent,” it says. “The speed of this shift towards grid parity with fossil fuels means that, in many instances, perceptions of the role of renewables in the energy mix have not caught up with reality.”

This confirms an earlier piece from Wapo that I keep harping about.

Oil is in steep decline. Nothing will bring it back to the days of its zenith.

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