Jim Chanos has a warning for OPEC members: pump oil now because it might not be worth much in 15 years.
The hedge fund manager was on CNBC on Thursday night, and was asked about the oil price.
“It’s down an awful lot,” he said. “Having said that, I think if you were to look out five or ten years, if I was a member of OPEC I would be pumping as much as I could today while it’s worth something because it might not be worth a whole lot by 2030.”
He added that he was short “all of the major leveraged oil companies,” without naming any names.
The reason for his bearishness on the oil price is the rise of solar and the advent of the electric car.
I think what’s going to happen, what is really fascinating, is that you’re going to see this connection between solar and electric vehicles and I think that’s one of the more interest things that not a lot of people are [talking about].
Imagine a world in which most of the vehicles are electric and yet they are powered off the grid by natural gas and solar. So you reduce coal emissions and you reduce burning oil. 80% of all petroleum demand is transportation.
Here is the clip:
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