How electric cars are disrupting Big Oil companies
The recently adopted Big Beautiful Bill by the administration of US President Donald Trump canceled federal tax incentives for clean energy programs and electric vehicles. Nevertheless, experts from Bloomberg New Energy Finance (BNEF) are convinced that oil consumption will sharply decline by 2030, while electric vehicle sales will grow thanks to new and improved models.
InsideEVs reported this.
Displacing Oil
BNEF experts predict that even if the slowdown in the US leads to a reduction of 14 million global EV sales by 2030, the broader transition to cleaner energy will continue worldwide.
The first million barrels of daily ICE fuel use were displaced in 2018 by electric vehicles. It took another six years to displace the next million barrels.
By the end of the decade, electric vehicles are expected to replace more than five million barrels of ICE fuel per day.
In 2023, the US consumed approximately 20 million barrels of oil daily, according to the US Energy Information Administration. If clean energy policies were maintained, this number could decrease even faster. However, Europe and China are expected to surpass the US in electric vehicle adoption.
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Oil producers are changing their focus
The projected decline in oil demand means that the world's leading fuel producers are now considering electric vehicles as well.
In June, for example, Chevron announced plans to acquire 125,000 hectares of land in Texas and Arkansas for lithium mining. British Petroleum is quickly buying charging equipment from Tesla and Alpitronic. Shell Recharge, an affiliate of Shell, is investing in charging stations worldwide. In 2023, it opened its largest charging station, equipped with 258 fast-charging racks, in Shenzhen, China.
The global momentum for electric vehicles and other clean energy sources means oil displacement will continue to grow without American leadership.
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