Billionaire John Arnold shared his view on the oil market in an interview Friday on CNBC's "Power Lunch."
"Oil is fascinating because there is this big shift, for decades the question has been about supply," Arnold said. "The coming 10 years is more about demand."
The investor cited what he called a "very good theory" on the impact from autonomous vehicles, electric vehicles, cheap electricity from renewable energy sources and ride-hailing apps hurting the demand for oil.
The "convergence of these four technologies ... Those will come together to structurally change transportation in the future. So people aren't going to own cars in the future. People are going to use transportation as a service," he said. "The ramifications for that are terribly bearish for oil."
Arnold also explained how the price of oil will likely not go above $60.
"There is just too much production in the United States that can come on at that level," he said. Oil companies "are going to be hedging and bringing on huge production" at that price.
US West Texas Intermediate crude oil (WTI) is trading up 17 cents, or 0.3 percent, at $51.46 per barrel midday Friday.
Arnold is a legendary portfolio manager, formerly of Centaurus Advisors. There weren't too many other energy experts in the hedge fund industry more well respected than the ex-Enron trader .
The investor reportedly generated a 317 percent return in 2006 and had annual returns of more than 50 percent in his first seven years managing his hedge fund, according to Fortune.
Arnold announced his retirement in 2012 to focus on his philanthropy at the Laura and John Arnold Foundation.