Over the last century, oil has shaped our lives and the world we live in, so is a trillion-dollar industry that has never really been challenged. Prepare to embrace a new world of electric vehicles and renewable energy. We have never known a time where the world did not covet oil, the abundance of energy density and fluidity of this so-called black gold has made it an easy choice for powering everything from cars to ships to planes even our heating.
According to the energy administration association, it's estimated that 80 million barrels of oil are produced each day. Oil has brought astronomical wealth to both companies and countries particularly in the middle-east where five of the oil-producing nations now belong to the 25 wealthiest countries in the world. Yet, thanks to initiatives such as the 2015 Paris climate conference, where for the first time 195 countries, signed a legally binding agreement to reduce carbon emissions; oil companies are under increasing pressure not just to reduce their substantial carbon emissions.
It is a long shot and EVs (Electric Vehicles) can be one spoke among the giant wheel that has to be turned. But EVs have a long way to go before it is in a position to challenge the oil and gas driven automobiles. The following are some of the biggest challenges faced by the EV industry. The huge investment required for charging stations, limited choices, expensive battery technology, etc. With billions spent in infrastructure development and R&D, developed countries can respond to these challenges. But what about other countries which make up the three-fourth of the world. Few developed countries alone changing over from oil and gas to electricity as a power source is not going to make a considerable impact on the climate change issues.
Another important fact to be aware of is that EVs are not 100% pollution-free. Yes, the buzz says otherwise, but how it can be considered pollution-free when the electricity needed to power EVs is produced using hydrocarbon ran machines. So, the talk in the town regarding the EV revolution posing a threat to the oil companies is not anything more than another sensational story that can turn a lot of heads. Oil and gas have been the back of the industrial revolution and a major catalyst of globalization. Reducing carbon emission and fighting climate change is quintessential, but framing the oil and gas industry as a culprit for these environmental issues never makes sense. We desperately need an energy source that is sustainable and eco-friendly, and EVs are not the answer to that on any given day. And till we have an answer, Oil & Gas industry and Oil companies are here to stay to keep the wheel moving.