The Electric-Car Boom Is So Real That Even Oil Companies Say It’s Coming

MAY 1 2017 BY MARK KANE 19

According to the Bloomberg New Energy Finance, oil companies are beginning to realize their fate on the eve of the electric car boom.

Chevrolet FNR-X Concept

BNEF reports that by 2020 the number of plug-in models on the market will increase to over 120, and many of these will be strong offerings; ones that will make old-school internal combustion vehicles look old fashioned.

The oil companies will then have to make their own life raft for displacing lost retail sales to passenger vehicle owners.

Total SA (globally one of the largest oil producers) forecasts 15-30% of passenger vehicles sales by 2030 to be plug-ins, and also an oil-based fuel peak demand coming within that period.

Total Chief Energy Economist Joel Couse said:

“EVs will make up 15 percent to 30 percent of new vehicles by 2030, after which fuel “demand will flatten out. Maybe even decline.”

BNEF noted that Total’s expectations are the highest among major oil companies, that slowly need to prepare for new market situation:

Other oil companies have been trimming their long-term forecasts for oil demand. Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden said in March that oil demand may peak in the late 2020s. It set up a business unit to identify the clean technologies where it could be most profitable.

Electric-Car Boom (Source: Bloomberg New Energy Finance)

Source: Bloomberg New Energy Finance, hat tip to Henry R!

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19 Comments on "The Electric-Car Boom Is So Real That Even Oil Companies Say It’s Coming"

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mx
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mx

Yes, Bloomberg gets it.
Also, BP and Total.

I’m still waiting for any US Oil Company to acknowledge reality.
Note, there’s still ZERO investment in Wind and Solar in the US Oil Industry. In spite of projects in wind and solar now generating electricity cheaper than Fracking/Natural-Gas.

There has only been one coal company that’s now converting it’s strip-mined acres to solar power production.

The negative effect of a “Republican” news media, has been actually Suicidal to Repub Business, making them blind to climate change risk, and EV’s.

Mark.ca
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Mark.ca

I’m actually preferring them not acknowledging or realizing it. That way at least they are not going to fight it, because let’s be honest, they aren’t just going to just change overnight to accommodate to the changing landscape….it’s not how it works.

pjwood1
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pjwood1

Not insofaras they can control the market. You have the top policy seats not just filled by red states, but the ~13 primary fossil producers. News over the past week is Perry is going to on to something strong enough to interfere with state’s rights, to follow out their RPS (renewable goals). Revolking the CARB waiver may just be a warm-up. If renewables are intermittent, that must be a national security threat, or at least an issue of grid reliability, so they’ll say. Both of these aspects are in Trump’s (federal) control.

Of the two remaining regular members on the FERC, one just resigned Friday. Trump gets to fill 4, out of 5, seats. What are we thinking that will do to wire tariffs and what I’m getting at, above? He talking about giving “fuel diversity” some serious respect. I won’t go on, but this is far from a free-market democratic America, when there’s plutocratic rent-seeking to do so the few states who are in control can keep it about what’s in their ground.

‘Rule of law’, baby. Swamp wins.

Dan
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Dan

I’m sure you’ve charged your car at an NRG EVGo station. What industry is the NRG group in?

AlphaEdge
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AlphaEdge

Here is a hint:
http://www.nrg.com/company/about/who-we-are/our-assets/

Net MW

Renewable Energy Subtotal (Solar/Wind) 1,415
East Subtotal (Oil/Gas) 21,386
Gulf Coast Subtotal (Oil/Gas) 14,863
West Subtotal (Oil/Gas) 6,085

unlucky
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unlucky

NRG (Dynegy) was forced to build those chargers after a settlement with California.

http://insideevs.com/with-legal-settlement-complete-evgo-network-now-officially-sold-to-vision-ridge-partners/

And then they sold off what they could as fast as they could.

Pushmi-Pullyu
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Pushmi-Pullyu

“Note, there’s still ZERO investment in Wind and Solar in the US Oil Industry.”

If so, that’s both depressing and astonishing. Big Oil companies are among the most profitable of any companies worldwide, with enormous amounts of excess capital they could, and should, be using to diversify their business into renewable energy, so their businesses can continue to survive or possibly even grow after peak oil happens.

Not only is that policy destructive to the environment, it’s short-term thinking and ultimately self-defeating.

But hey, if current Big Oil companies go down the tubes because they persisted in refusing to invest in renewable energy, then I for one certainly won’t cry any tears for them!

K A CHEAH
Guest

YES YOU HAVE THE MYOPIC & CORRUPTED CURRENT ADMINISTRATION’S CRONIES, TAKING BIG OIL MONEY, RUNNING THE WHITE HOUSE WHEREAS THE WHOLE WORLD IS GOING SUSTAINABLE ENERGY THEY ARE TAKING THE REVERSED ROUTE, EVEN Saudi Arabia is much wiser to Lead this “Solar Power Energy Revolution” as the whole of the middle east is now going renewable all out with oil money so that they will not run out of energy and power when their oil money runs out with its oil price is so low that it won’t be worthwhile to extract & produce oil no more at all, right & ok, with the full advancement of the inevitable “sustainable power energy” revolution? SO WITH THE CURRENT ADMINISTRATION, BIG OIL WILL BE VERY SHORTSIGHTED DOING THE REVERSE OF WHAT THE WHOLE WORLD IS DOING, SO WHEN THE OIL MONEY RUNS OUT IT MIGHT BE TOO LATE FOR THEM ALL, RIGHT AND SIMPLE TO VANISH LIKE KODAK, NOKIA AND OTHERS ONCE LEADERS IN THEIR OWN RIGHTS

Rightofthepeople
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Rightofthepeople

Republican news media? Surely you can’t be serious?

vvk
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vvk

Model S is a hatchback, not a sports car.

Miggy
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Miggy

Model S is not a Hatchback it is a Liftback, the GM Bolt is a Hatchback.

F150 Brian
Guest
F150 Brian

The probability of oil running out might be more of a concern to them than reduced consumption by automobiles, in which case the conversion to electric may actually help them. Remember that there are many products produced from oil other than gas/diesel – lubricants, plastics, etc, etc, etc which are used in EVERY aspect of our lives, including electric cars.

Now building new gas/diesel refineries would be a clear sign that they don’t don’t get it, but there is little talk about that these days.

Warren
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Warren

Blah-blah. Show us the March Bolt sales numbers! 🙂

Warren
Guest
Warren

Oops! April numbers that is.

Bob
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Bob

Life raft?

Easy.

They’ll invest a majority stock stake in whatever ev is a success story for that 30%.

mx
Guest
mx

Well, the longer they wait the more expensive Tesla gets.

Daytongarmin
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Daytongarmin

Something I don’t hear much about but appealed to me about electric cars is performance and fun. I don’t think electric cars, solar, etc. will help the mess we have created in the environment – too far past the tipping point. But electric cars are a lot more fun to drive than ICEs. Our Volt is a hoot and our P90DL is flat out amazing to drive. One of these days a lot of people are going to realize that the new car fun is electric.

Mister G
Guest
Mister G

Cleaner cars will help clean up the mess we have created along with preserving rain forests.

Ron M
Guest
Ron M

World sales of over 93,000 EV’s this month great news. I read an article in Renewable Energy World news that oil companies will be building offshore wind farms also that Denmark stopped subsidizing offshore wind because they can be built competitively. Oil will be around for decades but peak oil is near.