Electric Vehicles in Oil & Gas - Thematic Research
Automotive manufacturers have delved into electric vehicles as early as the 19th century and even achieved commercial success until Ford introduced more affordable and mass-produced cars running on internal combustion engines (ICE). Since then the equation between oil and automobile has been very straightforward and oil demand has grown consistently with increase in vehicle sales.
However, this scenario has changed slightly, and for the first time, oil and gas companies are feeling threatened by Electric Vehicles (EVs). A combination of factors are responsible for this development. As fossil fuels are chief sources of greenhouse gas emissions, environmentalists worldwide have lobbied time and again for their usage to be reduced through mandates on fuel efficiencies and imposition of stringent vehicular emission norms. With improvements in battery technology the costs of batteries, and in turn, Electric Vehicles (EVs) are coming down and becoming more viable options for ICE-based vehicles.
The global energy landscape is transitioning towards low-carbon emitting energy sources to slowdown the process of climate change. This transition is encouraging the adoption of Electric Vehicles (EVs), which has the potential to impact the global crude oil demand in the long term. Oil and Gas companies are making structural changes in their business offerings to brace themselves for the Electric Vehicles (EVs) adoption and convert this threat into an opportunity. These companies are finding new growth markets in EV charging infrastructure, especially in the European countries.
Oil and gas companies are also diversifying into power generation where demand is set to increase with the growing adoption of Electric Vehicles (EVs). Electric Vehicles (EVs) consume more power than a typical household, hence the addition of each EV would drive the power demand significantly. This has prompted oil and gas companies to partner with or acquire utility companies to expand their electricity generation capabilities beyond captive power. Oil and Gas companies have also started investing in technologies related to Electric Vehicles (EVs)battery manufacturing to support the Electric Vehicles (EVs) adoption.