Major European oil and gas companies like Shell, BP, TotalEnergies, and Repsol are adding more fast-charge points across gas stations to retain motorists switching to electric vehicles (EVs), according to GlobalData.
The leading data and analytics company estimates that EVs will quadruple in production, reaching 16.7 million by 2026. The key electric vehicle trends impacting the oil and gas industry are the growing presence in EV charging, potential opportunities in battery swapping, and catering to battery manufacturing.
Across the industry, automakers and suppliers are announcing bold strategies to pivot away from producing combustion vehicles and toward electric models. This has seen many companies race to secure vital supplies of batteries, EV components, and the raw materials needed to create them. EV metals such as lithium, cobalt, nickel, aluminum, cadmium, and zinc are among the most common metals used as raw materials for battery.
Ravindra Puranik, Oil and Gas Analyst at GlobalData said:
“Such a huge shift towards EVs has major implications on the profitability of oil in the motor sector. Connected cars, autonomous vehicles, shared mobility services and electrification are all shaking up the business strategies of oil companies, which are pivoting away from combustion vehicles and towards electric models. Most companies have taken the acquisition route to add EV charging technology to their portfolio.”Ravindra Puranik
In this regard, TotalEnergies has been the most prominent when it comes to Mergers & Acquisitions, having acquired a diverse range of companies from charging technology makers such as G2 mobility to battery manufacturers, according to GlobalData.
Companies Increase Footprint in EV
Generally, companies are beginning to increase their footprint in EV production. Japanese conglomerate Mitsui has gone one step further by venturing into original equipment manufacturing (OEM) for EVs.
“Mitsui has invested in EV makers Lucid and CaetanoBus to accelerate its mass adoption. It is also involved in EV battery manufacturing and charging through its investments in Forsee Power, The Mobility House, and CleverShuttle,” Puranik said.
Furthermore, Shell and TotalEnergies are leading the pack in terms of investment, by buying into areas across the EV ecosystem, from clean power generation, to battery technologies, and charging infrastructure. By 2025, Shell plans to deploy over 500,000 charge points worldwide, while TotalEnergies is targeting 150,000 charge points across Europe.
“Offering high-speed charging at petrol stations looks to be a sound strategy to retain existing customers while also attracting newer ones. With a mix of acquisitions and organic growth, oil majors are gradually establishing their charging infrastructure— not only in Europe but also across key markets in the US and Asia.”Ravindra Puranik
The global oil and gas industry is facing headwinds from environmentalists on fossil fuel usage to contain its impact on climate change. Oil majors are aligning their businesses to facilitate the global transition from internal combustion engine to EV. The profits that they generate from core oil and gas operations will be used to finance their investment in clean energy technologies, including EV charging infrastructure, according to GlobalData.
Most companies have taken the acquisition route to add EV charging technology to their portfolio. China had the largest electric vehicle fleet by the end of 2021 while Europe’s EV fleet grew at a faster rate than China.