The head of the largest oil company ExxonMobil, Darren Woods, has predicted a boom in electric cars and urged the oil refining business to seek new directions against the backdrop of the rise of the green car market.
Woods is confident that by 2040, all new passenger cars will be electric, which will lead to a drop in gasoline demand, but it won't hurt the industry if companies have time to develop a product diversification strategy.
In an interview with CNBC, the CEO of one of the major players in the global oil refining market said he expects gasoline consumption to drop to the 2013-2014 level in the coming years. One reason for this may be the inclusion of electric cars, he said.
Nowadays, the ecological agenda is important for many car enthusiasts, moreover, automation is reaching all areas, and the strong development of the electric car market is quite understandable and expected (until a complete transition to them in a couple of decades).
According to statistics from the analysis company Canalys, in 2021 the share of electric and hybrid cars in the car market was only 9%.
On the other hand, this seemingly insignificant 9% shows an increase of 109% compared to 2020, and if the dynamic continues, then Woods' forecast no longer seems unrealistic.
Be that as it may, Woods speaks of the boom in electric cars from his pragmatic position. His company is seriously developing a strategy of behavior in the market, when gasoline cars will abruptly cease to be in demand.
The head of Exxon Mobil does not believe that this will significantly believe in the oil and gas sector: for example, the company's services will continue to be needed in the field of cargo transportation, air transport and other industries.
The same plastics Exxon Mobil uses could be used in the growing popularity of electric vehicles.
And yet it is important to think in new directions now. Exxon Mobil, for example, is engaged in the production of industrial biofuels, which will help maintain revenue.
The company is actively investing in chemical development (Woods himself spent most of his time at ExxonMobil in chemistry). He is confident that this direction will be the key to keeping petrochemical companies profitable during the transition to clean energy.
Woods is therefore not worried about the future of the company, despite the forecast of a global transition to electric cars and falling demand for gasoline and other petroleum products:
"Frankly, this change is not going to destroy this business or this industry."
Author:
Ekaterina Alipova
Source: RB
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.
