Southridge Capital Releases Statement about Impact of Electric Cars on Oil Prices
RIDGEFIELD, Conn., Sept. 3, 2015 /PRNewswire/ -- Stephen Hicks, CEO and Founder of Southridge Capital, a diversified financial holding company specializing in direct investment and advisory services to small and middle market companies, has released a statement evaluating the impact of the price of oil.
Going back a year ago, the price of West Texas Intermediate Crude was about $95 a barrel. Over the past year, as has been widely reported, oil has dropped precipitously to under $40 per barrel. Much has been made of the decline. Stated causes of the decline have included OPEC not cutting production, increased United States production, the availability of alternative energy sources and the slow global growth. Hicks says, "However, I believe there is another issue which will have greater impact over time and that is the rise of electric cars. What we are seeing here is similar to the Wright Brothers and commercial air traffic a century ago. The first flight at Kitty Hawk was in 1903. However, it was not until 1919 that the first municipal airport was constructed."
In short, Hicks says first comes the idea but then there needs to be infrastructure and technical improvements to make it a reality. It will take decades for there to be improvements in battery and charging technology and there will be a great need for charging stations on the road to allow people to drive for long periods of time without stopping. "However, by the middle of this century, internal combustion will be gone," concludes Hicks.
About Southridge Capital: Southridge Capital is a diversified financial holding company specializing in direct investment and advisory services to small and middle market companies. Since 1996 the structured finance team has made direct investment of over $1.8 billion into growth companies globally. Our expertise lies in our ability to customize a financing plan for the prospective client and then execute on that plan without fail. For more information, visit: www.southridge.com
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