Digitization and electrification are spreading
across all industries and the auto industry is no exception. As
charging technology for electric vehicles (EVs) gradually takes
reins from the internal combustion engine as the king of the road
in the rapidly evolving energy landscape, oil and gas companies
are acknowledging the rise of EVs, observes leading data and
analytics company GlobalData.
The company’s latest report,
‘Electric
vehicles in oil &
gas,’ reveals that 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 by contributing to
the development of battery technology and deployment of EV
charging points.
Ravindra Puranik, Oil and Gas Analyst
at GlobalData,
says: “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.”
As a result, in their bid to function on a different
playing field and compete with tech-savvy counterparts, oil and
gas companies are diversifying into power generation and battery
manufacturing, two areas where demand is set to increase with the
growing adoption of EVs.
For example, Norwegian oil company Statoil dropped
‘oil’ in its name and rebranded itself as ‘Equinor’ in an effort
to diversify beyond oil and gas business 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.
IMAGE
FOR PUBLICATION – Please click this link for the chart: ‘Forecast
for EV Sales in Global Passenger Vehicle Sales between 2015 and
2045’
Puranik concludes: “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.”
ENDS
Notes to Editors
-
Comments provided by Ravindra Puranik, Oil and Gas
Analyst at GlobalData
-
Information based on
GlobalData’s Electric
vehicles in oil & gas
-
This report was built using data and information sourced
from proprietary databases, primary and secondary research, and
in-house analysis conducted by GlobalData’s team of industry
experts.
