How Electric Vehicles Are Destroying Major Oil Companies.

Displacing Oil

The last bill from the administration of U.S. President Donald Trump was recognized by experts from Bloomberg New Energy Finance (BNEF) as a measure that revoked federal tax incentives in the field of clean energy and electric vehicles. However, despite this, BNEF believes that by 2030, oil consumption will decrease, while electric vehicle sales will only grow due to the introduction of new and improved models.

According to BNEF, even if the slowdown in growth rates is observed in the U.S. and leads to a decrease in global electric vehicle sales by 14 million units by 2030, the replacement of oil with cleaner energy will still maintain its positive trend worldwide.

The first million barrels of daily fuel consumption for internal combustion engines were displaced back in 2018 due to electric vehicles. It took another six years to displace the next million. It is projected that by the end of the decade, electric vehicles will replace over five million barrels of fuel for internal combustion engines daily.

Oil Companies Shift Focus

The anticipated decrease in oil demand has led major fuel producers to include electric vehicles in their plans. For example, in June, Chevron announced the purchase of 125,000 acres of land in Texas and Arkansas for lithium extraction. British Petroleum is actively acquiring charging equipment from Tesla and Alpitronic. Shell Recharge, a subsidiary of Shell, is already investing in charging stations worldwide and opened the largest of them with 258 fast-charging stations in Shenzhen, China in 2023.

The global shift towards electric vehicles and other sources of clean energy means that the displacement of oil will continue to grow, though no longer with the defining role of the U.S.