For many decades the US has been thirsty for foreign oil because its production hasn't been enough, net imports of oil were the equivalent of 25% of local consumption in 2016. Many Western European countries have to buy almost all the oil they consume. China, India, and Japan are huge oil importers too. OPEC countries and Russia have made great amounts of money by selling black gold, but the revolution led by Elon Musk could change this. The output of Tesla vehicles keeps growing, and this is unstoppable. Tesla’s Model 3 is creating a key moment, more than 500,000 people have paid $1,000 to reserve their vehicles.
Each $1,000 in reserve mean $35,000 in future sales. Many countries have got economic and political power because of oil. The OPEC became rich and powerful in the 1970s when the oil prices increased exponentially. Last few years the prices fell a lot because of the US shale oil production. Electric vehicles will increase the pain for oil exporters.
Winners because of the electric car revolution
China imported $116 billion of oil in 2016, US bought $108 billion, India imported almost $61 billion, and the list goes on. Oil is one of the main imports of United States. For China and India, a reduction of the oil price will be a blessing because they have huge populations and at the same time they produce less oil than the US.
This is even better for India because its population will be the biggest one in the future and the oil output of this country is very reduced. We have to add that the per capita income of India is almost five times smaller than the Chinese one and more than 30 times smaller than the American one, thus, paying the oil bill is a great effort for that country.
Rich and developed Japan imported almost $51 billion of oil last year but the imports are falling, Electric Cars will help even more.
Losers: The OPEC and Russia
Saudi Arabia exported more than $136 billion of oil in 2016, this huge amount of money has been able to create one of the biggest military budgets on the planet. Next place was for Russia; it sold more than $73 billion, oil has been the main subsidy for the government of Putin.
Venezuela sold more than $20 billion of oil, a reduction of the oil price in a country where the minimum wage is already similar to those of African countries would be lethal. Nigeria exported $27 billion of black gold, but we have to remember that the most populated country in Africa has more than 180 million inhabitants. The currency of that country, the Naira, has lost more than 50% of its value the last years. A lower oil price will create a new balance of power.
