The continued growth of electric vehicle adoption around the world is reshaping the outlook for the oil and gas industry, which will need to diversify its revenue streams in the future to maintain profitability, GlobalData has said.
According to the report, Electric Vehicles in Oil & Gas, which was published by GlobalData’s Strategic Intelligence division, sales of battery electric vehicles (BEVs) rose by 13% in 2024, and accounted for 14% of new personal vehicle sales.
Charging infrastructure
Should this rate of expansion continue, oil and gas companies will need to diversity into EV-related energy solutions, including charging infrastructure and battery technologies, the report states.
This is already taking place across Europe, with firms including Shell, BP, TotalEnergies, and Eni investing in public charging networks as part of their broader diversification strategies. Shell currently operates approximately 75,000 public charging points internationally, while TotalEnergies aims to install 150,000 charge points by the end of this year.
“The oil and gas industry needs to consider rising penetration of EVs in new vehicle sales when charting long-term growth plans,” commented Ravindra Puranik, oil and gas analyst at GlobalData.
“As EV technology improves and charging infrastructure expands, demand for traditional oil may falter. It could have a transformative impact on the downstream sector in coming decades, significantly altering demand patterns for refined products.”
Established forecourt locations represent a valuable opportunity for oil and gas companies to invest in charging hubs, particularly along major transport routes and in cities, while GlobalData also notes increased investment in battery-related segments, such as energy storage systems.
Clear opportunities
“Despite strong push from some countries towards phasing out internal combustion engines (ICEs) in favour of cleaner alternatives, ICE vehicles will continue to be part of the transport landscape for years to come due to their emotional connect with customers and their relatively longer operational life,” Puranik added.
“Thus, demand for petroleum fuels will persist in global markets to cater to ongoing mobility and economic needs, even as the industry transitions toward cleaner solutions. The transition to EVs also creates clear opportunities for oil and gas companies.” Read more here.
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