In Engie allowed a reduction in the price of oil to $10 by 2025

In the next few years, the world can survive five “energy tsunami”, in which the price of a barrel of oil could collapse to $10, according to Bloomberg, citing Executive Vice-President of the energy company Engie Thierry Lepere.

According to Lepere charge Engie in the development of innovative technologies, with years of increasing pressure on global oil prices will provide lower cost solar energy and hydrogen, cheaper batteries, and the growing number of electric vehicles and “smart buildings”.

“Even if oil demand will continue to grow until 2025, after that, prices could fall to $10 [per barrel] if the market will go a significant decline in demand,” – said Lepercq.

The former head of the company Solairedirect (in 2015 Engie bought it for €200 million) stressed that the number of electric vehicles in the world (as well as the number of solar panels and capacity of batteries) is being changed by the so-called J-curve, when a small decline follows a sharp rise.

According to Lepere, the release of new models of electric cars that can travel on a single charge for 500 km, and an increase in the number of charging stations will lead to the fact that the authorities are ready to ban the movement of cars with petrol and diesel engines.

Top Manager Engie believes that before 2025 the cost of a megawatt-hour of solar energy in the sunniest places of the world could fall to $10. As a result, the production of hydrogen would be no more than the liquefaction of natural gas.

“We will be able to deliver [the consumers of] the energy produced at very low cost in remote places,” explained Lepers.

Vice President Engie highlighted the development of the Japanese company Kawasaki Heavy Industries special tanker for transportation of liquefied hydrogen, which is scheduled to deliver to Japan from Australia. According to Lepere, over the next decade will be built “hundreds” of such vessels

She Engie by 2018 plans to spend €1.5 billion on the development of technologies related to hydrogen production, networking batteries serving entire neighborhoods, and the construction of energy-saving smart buildings.

“In the coming months we plan to announce the first projects, investments and potential acquisitions in these areas,” – said Lepers, noting that we are talking about the development of such areas, where a significant effect can be achieved at relatively low cost.

In the fall of 2016, chief economist at Renaissance Capital, Charles Robertson reported that, following the collapse of the oil may be followed (2018-2020) may be followed by the democratization of political regimes in Russia, Iran and Venezuela.

November 30, 2016, the OPEC members decided to cut in early 2017 total daily oil production by 1.2 million barrels. In turn 11 non-OPEC countries (including Russia) have committed from January 2017 in total to reduce the volume of oil production at 558 thousand Barr./day. Russia plans to gradually reduce production in the first half of 2017 for 300 thousand Barr./day.

Against the background of statements about the upcoming reduction of the production cost of a barrel of Brent since the beginning of December increased by more than 10%, approaching to the maximum to $58. During today’s trading on the exchange ICE the price of a barrel of Brent is around $55,5.