Is Big Oil plugged in?
We focus a lot (rightly so) on how great electric cars are. They reduce emissions, they’re fun to drive, they save money, they improve air quality, and, well, I could go on. But we talk less about what it means for oil. Because as electric car sales in Canada continue to climb, thousands of new EV owners will be foregoing their gas station visits.
A new report by EY found that if electric vehicles make up 30% of vehicle stock by 2030, demand for oil would drop by 252,000 barrels per day. In short, oil suppliers need to prepare for considerably lower demand.
As EY’s Canada oil and gas leader Lance Mortlock said, “Diversifying portfolios will be crucial for oil and gas companies in a rapid-adoption future." The rise of electric vehicles over the next decade is well-documented and widely predicted. It shouldn’t come as a shock to petroleum producers. The time to adapt is now.