Fitch says investors could sell out of energy companies.
Oil companies face a “resoundingly negative” threat from a sharp growth of electric cars, one of the leading credit rating agencies has warned.
“Widespread adoption of battery-powered vehicles is a serious threat to the oil industry,” says a report from Fitch Ratings that urges energy companies to plan for “radical change” spurred by new technologies that could arrive faster than expected.
Countries like Nigeria, Angola, Equatorial Guinea and others need to diversify generating revenue streams of their economies.
“If they stick their heads in the sand and try and pretend it will all go away, we think they will ultimately have issues,” the report’s lead author, Alex Griffiths, a Fitch managing director, told the Financial Times. “They need to have a plan.”
Read the complete article by: Pilita Clark, Andrew Ward and Neil Hume in London in FT.com