What’s Driving Oil & Gas Companies Towards Electric Charging?

Is it the end of oil & gas as we know it? As BP and Shell invest heavily into battery and electric car charging businesses, are we entering a new age of electrification?

Electric car batteries and charging stations might not be the first thing to come to mind when thinking of oil & gas companies. Yet this association to electric vehicle (EV) tech is growing increasingly popular.

Personal transportation has gone through various stages of tech advancement, from animal-pulled buggies to the current engine – or oil – powered car. Let’s look back to 1886, when the first petrol-powered car came to be at the hands of Karl Benz. If that surname sounds familiar, it is the very same one found in Daimler-Benz, owner of the Mercedes car brand.

This marvel of engineering had, arguably, more impact on the global economy than any other product developed in the 20th century. In 1908, access to automobiles was made even easier with the mass production of Ford’s Model T. Fast-forward to present day – it’s unimaginable to think of everyday life without cars, but now we’re witnessing a new transition – from petrol and diesel engines to more sustainable electric vehicles.

BP has recently bought Chargepoint, UK’s largest EV charging network. This is only the latest addition to a series of recent investments in the EV sector. BP isn’t the only company getting a foothold in EV tech. Royal Dutch Shell bought one of Europe’s largest EV-charging networks, NewMotion. Total acquired battery developers Saft back in 2016. In the meantime, Portuguese Galp has just been awarded exclusive rights to the national charging network, Mobi.E. You can see the latest valuation in BP shares here.

According to reports by analysts in Bank of America, it is forecast that half of globally sold cars will be electric by the early 2030s. To put this in perspective, there were around 2 million EVs sold in 2016, but that number is expected to grow to 58 million by 2038. This shift to electrification will impact global oil production, inevitably leading to a decline.

This diversification by European oil giants is part of a broader push into the EV supply chain and is fully contextualised. These companies have seen the proverbial writing on the wall and don’t intend to be left behind. From a logistics perspective, it makes sense to adapt the current fuel station network to include EV charging stations.

As a whole, the continued investment in electric vehicle technology can be seen as a predictable future-proofing move that will allow oil & gas to prosper in the new age of electrification.

Average U.S. New Car Fuel Economy Is Up Again, Now 25.4 MPG

The University of Michigan has crunched the numbers and found that the average new car fuel economy has reached an all-time high of 25.4 mpg. Updated on April 2^nd, 2014, the EPA’s Fuel Economy Guide for 2013 includes statistics of 99.8% of new cars sold in the U.S. in the year 2013.

The EPA began its report on average fuel economy when the average teetered between 20.1 and 20.4 mpg during the last quarter of 2007. Over the past 78 months, the largest increases can be seen annually from September to October. This period during 2009 experienced a full gallon increase in economy, the largest single month increase and more than three times the 0.3 mpg jump that occurred during March 2014.This big jump in fuel economy can be at least partily attributed to the Cash for Clunkers program that was enacted in June of 2009. This year has shown a 0.4 mpg rise while 2012 saw a 1.0 mpg increase over 2012, the biggest single year increase in the last six years.

A previous report by the University of Michigan revealed stats on the 83 years prior to the beginning of the EPA’s study (1923-2006). This study states that in 1923 the fuel efficiency average was only 14 mpg and actually decreased by 2.1 miles over the course of the next 50 years.

During the 1970’s, a fuel crisis forced manufacturers to improve fuel economy and lead to a gain of 5 mpg (16.9) by 1991. Following these years of prosperity the numbers continued to rise, albeit slowly, as 2006 saw an average of 17.2 mpg, only a 0.3 increase over the 23 years before.

While averages may have been low in the dawning of the industry, some models managed to still receive respectable numbers. In 1923, the Ford Model T still pull out an impressive 25 miles gallon. One look at a Model T showcases the simplicity of their design and the lack of modern day amenities that allow this 1,200 lb car to get 25 mpg out of a 2.9L 20hp engine.  As we make the switch to lightweight materials, we can continue to add features while decreasing weight, bringing us past the limits of current technology and a few miles further down the road.

Sources| Photos: UMTRI |Gizmag

India’s Tiny Vans A New Wave Of Automotive Ingenuity

The Ford Model T was really only remarkable because it was produced in such large numbers. Painted just one color (black!) and available with only the most basic of options, the Model T was a very humble vehicle built en masse. Today, America lacks such simple, basic transportation…but over in India automakers are producing a new generation of cars that harken back to the era of the Model T both in simplicity and broad appeal.

Jalopnik’s Jason Torchinsky wrote a very compelling piece on why India is producing some of the most ingenious cars in the world. Because the average Indian consumer is so poor, any car with aspirations of selling in large numbers must be both cheap to produce and dead nuts reliable.

The Indians seem capable of doing both, developing among other things a Tata Nano-based van (called the Magic Iris). In order to save money and weight, the Magic Iris uses windows and a rear tailgate made from canvas. Coupled with an 11 horsepower diesel engine, the Magic Iris has very Model T-like specs; a 35 mph top speed, and a mpg rating of 70 to 80 mpg.

For the average Indian, who is lucky to even own a three-wheeled auto-rickshaw, the Magic Iris is a big step up, as is the Mahindra Maxximo. With three rows of seats and a 25-horsepower engine, the Maxximo also utilizes a primitive start/stop system and can even be had with a CNG-powered engine. An all-electric version is in the works as well, though EVs in India will likely have a very limited appeal.

The whole Jalopnik piece is an insightful look into how different and creative the Indian automakers are. It even landed Jason an invitation to see these cars for himself from the owner of Mahindra. Maybe while he is over there, he can find out what happened to the small diesel pickup we were supposed to get.

Source: Jalopnik