Oil will have to be priced at USD 9-10 per barrel in the long term for gasoline to remain competitive with clean energy for transportation and USD 17-19 per barrel for diesel, according to a BNP Paribas analysis, quoted by the Financial Times.

At the same investment parity, new solar and wind energy projects that power electric vehicles will eventually produce up to seven times more useful energy than gasoline for cars with internal combustion engines with oil quoted at current levels, say the authors of the analysis. Yesterday, the crude oil destined for the American market was traded at USD 55 a barrel, according to zf.ro.

“We have considered an investor with USD 100 billion who has to decide whether to invest in oil or renewable, knowing that the energy is intended to propel cars and other light vehicles,” say analysts.

Their calculations found that for the same capital, wind and solar projects will produce 3-4 times more useful energy at the wheel level than oil at USD 60 a barrel for diesel vehicles. Therefore, analysts believe it is becoming increasingly difficult to argue that oil is the superior fuel from an economic point of view, and the comparison cannot be made when it comes to environmental issues.