- What you need to know...
- Digitization and electrification are spreading across all industries and the auto industry is no exception.
- EVs consume more power than a typical household, hence the addition of each EV would drive the power demand significantly.
- Due to a combination of factors such as growing environmental awareness and improvements in battery technology, oil and gas companies are gearing up for the EV onslaught.
- Today, there are 3m electric vehicles on the world’s roads, but this could see an increase to 300m by 2040.
Impact of electric vehicles on the oil and gas industry
For the first time, oil and gas companies are feeling threatened by EVs. A combination of factors are responsible for this. As fossil fuels are chief sources of greenhouse gas emissons, environmentalists worldwide have lobbied time and time again for their usage to be reduced through mandates on fuel efficiencies and imposition of stringent vehicular emission norms.
With the improvements in battery technology the cost of batteries, and in turn, EVs are coming down and becoming more viable options for ICE-based vehicles. This has encouraged some countries to bring in the process of phasing-out gasoline-powered vehicles.