The transformative impact of electric vehicles on the oil and gas sector

The electric vehicle (EV) sector is undergoing rapid transformation, creating strategic shifts within the oil and gas industry. With 10.4 million battery-electric vehicles (BEVs) sold globally in 2024—accounting for 14% of new personal vehicle sales—industry players are under increasing pressure to adapt to changing market dynamics. This report explores how EVs are shaping the oil and gas landscape and the imperative for industry players to evolve their operational models.

As governments in select markets—most notably Europe—advance plans to phase out internal combustion engine (ICE) vehicles through regulatory mandates and incentives for electrification, the long-term outlook for transport fuel demand is increasingly under scrutiny. For oil and gas companies, this shift marks a critical moment of reflection, requiring strategic reassessment of how they position themselves in a world that is steadily electrifying.

Leading oil and gas companies recognise the need to adapt by extending their downstream strategies beyond conventional fuels. It involves investing in EV charging infrastructure and forming partnerships with electric mobility and battery technology providers for applicable products and services. As ICE phase-out policies reshape transport energy demand in select markets, these initiatives allow oil and gas companies to leverage their existing retail networks and customer access to position themselves in the evolving mobility ecosystem.

Companies such as Shell and TotalEnergies are investing heavily in EV charging infrastructure, with ambitious targets to operate extensive public charging networks. This strategic pivot not only demonstrates adaptation but positions these firms to capitalise on the burgeoning low-carbon mobility market.

The landscape of electric mobility is evolving, characterised by both opportunity and uncertainty. To thrive, oil and gas enterprises must prioritise strategic partnerships and innovative solutions in energy storage and digital transformation to maintain a competitive edge. As the EV market matures, companies that embrace these changes will not merely survive; they will redefine the boundaries of the industry.

The shift towards EVs is more than a transient trend; it is a pivotal transformation that demands profound adjustments from oil and gas companies. While the growing adoption of EVs is reshaping mobility, demand for ICE vehicles remains steady, underscoring that oil and gas will continue to play a critical role in global transportation. By recognising the significance of this dual dynamic and adopting proactive strategies, companies will be better positioned to navigate both the challenges and opportunities of the emerging mobility landscape.

Further discussion on initiatives from oil and gas companies in line with growing EV penetration and related trends can be found in GlobalData’s latest theme report, ‘Electric Vehicles in Oil & Gas’.

“The transformative impact of electric vehicles on the oil and gas sector” was originally created and published by Offshore Technology, a GlobalData owned brand.

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