Oil prices continue to face pressure due to demand and geo-politics

1. Paul Young CPA, CGA
December 24, 2018
What’s Next For Oil

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain
Management
• Academia – Advance
Accounting, Public Finance and
Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 Monthly Oil Production by Key Countries
 Oil Application
 Automotive Market – World Wide
 Automotive Market – World Wide – Electrical
Vehicles
 What are the risks to Electrical Vehicles
 Electrical Grid
 Oil Rigs vs Oil Pricing
 Will oil disappear

4. Introduction

5. Monthly Oil Production by Key Countries
Source - https://knoema.com/atlas/topics/Energy/Oil/Production-of-crude-oil

6. Oil Applications
/ Refining
Source -
https://www.eia.gov/energyexpla
ined/index.php?page=oil_refining

7. Automotive World
Market
Source – Scotiabank -
https://www.scotiabank.com/content/da
m/scotiabank/sub-brands/scotiabank-
economics/english/documents/global-
auto-report/GAR_2018-10-23.pdf

8. Rare Metals /
China
Source -
https://investingnews.com/daily/re
source-investing/critical-metals-
investing/rare-earth-investing/rare-
earth-outlook/

9. Electrical Car Market
Source - https://insideevs.com/half-worlds-electric-cars-in-just-25-cities/
According to the International Council on Clean Transportation (ICCT), nearly half of all plug-in electric
passenger cars are used in just 25 metropolitan areas.
At the end of 2017, the number was 1.4 million out of 3.1 million, which translated to around 45% in those
25 cities.
That’s pretty interesting, especially since overall, those 25 markets represent only 12% of the world’s
passenger car sales. In other words, there are important reasons that make plug-ins appealing in certain
metro areas.

10. Risks to Electrical vehicles
ACCESS TO RAW MATERIALS –
LITHIUM, VANADIUM, COBALT AND
RARE METALS -
HTTPS://WWW.SPGLOBAL.COM/EN/R
ESEARCH-
INSIGHTS/ARTICLES/COBALT-KEY-TO-
ELECTRIC-VEHICLES-BUT-
AUTOMAKERS-HUSHED-ON-RISKS
THE ABILITY OF THE GRID TO HANDLE
PLUG-IN STATIONS -
HTTPS://WWW.FORBES.COM/SITES/P
ETERDETWILER/2013/01/28/ELECTRI
C-CARS-AND-THE-POWER-GRID-HOW-
ARE-THEY-COMING-
TOGETHER/#648168B31976
ACCESS TO PLUG-IN STATIONS ABILITY OF BATTERIES TO HANDLE
ADVERSE WEATHER CONDITIONS

11. World Electrical
Grid
 OECD countries in general are
producing electricity using
combustible fuels, i.e. Coal and
Natural Gas
 Canada produces over 80% of
their power from renewable
sources

12. Oil Pricing vs Oil Rigs
Source – BMO Economics and Baker Hughes

13. USA Oil vs Canada

14. World-Wide Oil
Issues
Source -
https://www.nextbigfuture.com/20
18/12/surging-us-oil-from-efficient-
fracking-is-forcing-more-opec-
cuts.html?utm_source=feedburner&
utm_medium=feed&utm_campaign=
Feed%3A+blogspot%2Fadvancednano
+%28nextbigfuture%29

15. Future of Oil
Source - http://www.petroleum.co.uk/the-future-of-petroleum

16. Summary
Oil is not go away anytime soon as hydrocarbons and gasoline
play a significant role in everyday lives of people
China continues to build coal-fired plants. Catherine McKenna
keeps pushing for end to coal, but that will not happen anytime
soon - https://www.chinadialogue.net/blog/10761-China-is-
building-coal-power-again/en
Electrical cars need to be both cost-competitive and reliable
Pro-climate change people need to stop blaming the whole
world’s bad pollution laws on CO2 -
https://www.slideshare.net/paulyoungcga/blaming-weather-
related-issues-on-climate-change