GlobalData’s latest report, Electric vehicles in oil & gas, suggests that oil and gas companies are playing a key role in increasing electric vehicles (EV) adoption by contributing to the development of battery technology and deployment of EV charging points at retail outlets.
However, oil and gas companies are feeling threatened by EVs. A combination of factors is 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, EVs are coming down and becoming more viable options for ICE-based vehicles. This has encouraged select countries around the world to begin the process of phasing-out of gasoline-powered vehicles.
Oil and gas companies are also diversifying into power generation and battery manufacturing, two areas where demand is set to increase with the growing adoption of EVs. 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. Norwegian oil company, Statoil, dropped ‘oil’ in its name and rebranded itself as ‘Equinor’ in an effort to diversify beyond the oil and gas business and mainly into renewable energy projects, to reduce its carbon footprint and appear more relevant in these evolving energy dynamics.
GlobalData’s thematic research identifies Royal Dutch Shell, BP, Total, and Repsol as some of the key companies at the forefront of the deployment of EV technology over the next two to five years.
Oil and gas companies at the forefront of the deployment of EV technology over the next two to five years
|Source: GlobalData Thematic Research ©GlobalData|