Falling oil prices how the cauldron at the end of the “new”

Polaris solar PV net news: since June, international oil prices have fallen more than 40%, its biggest decline in five years, without considering the extreme effects of the financial crisis, is the largest global oil prices drop in 15 years, but this fall has not ended, WTI and Brent oil prices kept falling.

The fall in the oil price, we begin to talk about here would like to briefly talk about the impact of falling oil prices on new energy industry, this plunge in global new energy enterprises are worried. Stock market is the best barometer of the market, according to snowball I the financial stocks in the solar index since August, in solar stocks index has fallen by about 40%, just oil prices close (I snow globe in solar stocks index was compiled an index of financial stocks I website designed to reflect the prices of Chinese stocks solar energy shares. Solar plate covers most of China’s most influential PV enterprises). In addition, in January-October, United States new solar energy capacity fell 31%, as of December, the proportion of solar energy capacity of the nation’s total installed capacity has dropped to 18% from 20% last year, these events have a close relationship and international oil prices fell sharply. What is the relationship, we can from a dialectical analysis of both negative and positive angles and, of course, negative effects far outweigh the positive effects.

Plummeting oil prices for new energy, the negative effects of a major role in two aspects, first of all, lower oil prices led declining world prices of energy products and electricity, undermining the competitiveness of the new energy economy. Secondly, this round of plummeting revolutionized many national Governments and medium-and long-term expectations of supply and demand for global energy prices, leading these countries revised their renewable energy policies.

In addition to biofuels, renewable energy is not a direct substitute for oil, as represented by the photovoltaic and wind energy is mainly used for power generation, while the oil to transportation fuels and chemical raw materials, in the developed countries of the world only Japan oil over 10%, 11%, remaining oil ratio in the developed world are only digits. Moreover, because of oil pollution from large, even if the oil price collapse, global use of oil is not growth, still account for only a small proportion of direct extrusion effect on new energy is very limited.

However, as the price of oil and natural gas prices are closely interrelated and plummeting oil prices are directly contributing to the fall in natural gas prices. According to Platts energy data revealed that LNG prices have fallen sharply so far this year, the average decline in the global market has more than 40%. Gas is the main energy in developed countries, such as the United Kingdom and the United States share gas-electric 30%, Japan 40%, Netherlands and Belgium is the proportion of gas-electric 50%, Singapore and Luxembourg more than 80%, even in some developing countries, gas-electric ratio is quite high, for example, Turkey, Viet Nam and Malaysia exceeded the proportion of gas-electric 40%. New energy investment even more wrenching is, the less carbon-emitting gas, pollutant emissions and rarely, so it has been regarded as the direct competitor of the new energy power generation, this round of price of natural gas plummeted, direct threats to the new energy economy can be described as drastic.

Also, near end of, currently States Government are in developed or amendment respective of energy policy, previously States of energy policy are is in high oil of market background Xia developed of, international oil will long-term keep 80 dollars above is States developed energy policy of preset conditions, believes this round oil plunged will to States decision-making left quite deep of impression, directly Subversion its for international oil of run in the long expected, then effects medium-and long-term energy policy target, has may prompted States amendment respective of new energy medium-and long-term development target, This will lead to a new global energy business a major setback.

But there are two sides to everything, not to mention the oil prices collapsed this roiling global economic events, for new energy, and plummeting oil prices are some of the positive. First, the plummeting oil prices led to lower electricity prices around the world. New sources of energy, particularly PV production costs will also be reduced. Power consumption of PV module costs about 15% or so, assuming 30% drop in price, the PV module production cost will be less about 5% will enhance the economics of PV power generation.

In addition, if from the perspective of the balance of payments, and plummeting oil prices the equivalent energy exporter to a net importer of energy greatly benefit at the expense of the interests of the small number of exporters of resources for global economic prosperity. According to calculation, oil fell 40 dollars, representative with producer annually to consumers transfer about 1.3 trillion dollars, oil plunged also can help many national cuts energy consumption transfer paid, for energy-importing country increased sharply income and save large spending, good of macroeconomic environment is new energy development of cornerstone, no national will in SAC in the shy of when vigorously development new energy, so this also is oil plunged for new energy of positive meaning is one of’s

The current international oil prices have not yet bottomed out, predicts oil prices will bottom at around $ 50, and long-term consolidation throughout the $ 60, if that’s the case, it will fundamentally change the valuation of new energy companies, wants investors to stay alert.

Original title: falling oil prices how the cauldron at the end of the “new”

Posted in News.