Pierre El Sokhn

Electrical cars and Their Effects on the Fuel Industry

E-cars are the future, and the world is gearing up to become more electric car-friendly. Electrical cars are not conventional; they are unlike the traditional fuel-based cars. The whole idea of e-cars is to cut down on energy consumption and pollution. The new electric car models have been successful in delivering these aspects, thanks to their modern designs. Currently, there is still a large chunk of the population that still uses traditional cars – but electrical cars are expected to take over by 2050, and this is a great sign.

Best Electrical cars

While electrical cars are excellent from the environmental point of view, there is one industry that will be drastically affected – the fuel industry. The countries that extract oil from the depths of the oceans are likely to bear the brunt of the introduction of e-cars – and Lebanon is one of them. As the demand for fuel falls across the world, the profits Lebanon derives from the fuel industry would plummet irreversibly.

Electrical cars

Companies manufacturing electrical cars are doing all they can to bring these e-cars into the mainstream. The decreasing prices of batteries on which these e-cars run is only the beginning. In 2020 itself, the sales of electric cars shot up by roughly 60%; and the numbers are expected to stay the same, even in the coming years.

If the growth rate shows similar trends even in near future, the requirement of oil would dwindle by 2 million barrels a day by 2023. However, there is still hope for the oil industry in Lebanon and other oil-producing countries as many countries have still not adapted to the concept of electrical cars. For example, people in India and China would still prefer petrol and diesel-run cars over electrical cars. This gives oil industries scope for the future.

The push towards electrification of the transport industry comes as an existential threat to not only Lebanon’s oil sector but the global oil sector as a whole. And this threat, no matter how skeptical it is, is not something to be dismissed. Oil supporters still continue defending fuel-based cars. And they have an argument that is worthy of consideration – electrical vehicles are not as functional as combustion engine cars. Holding on to this argument, this clan of fuel supporters feels that global fossil fuel demand would still be intact, even in the mid-century.

On the other hand, team electrical vehicles say that the market for e-cars is relatively new, and people would take time to get accustomed to them. They keep stressing the point that it is too early to know if both these cars are headed for a collision.

Like we mentioned earlier, e-cars are here to stay. Having said that, electrical cars also come with their own challenges. One of the biggest hurdles is to generate and deploy enough chargers required for the smooth, efficient functioning of electrical cars. Only time will tell how much electrical cars actually impact the fuel industry. Until then, the fuel industry has to keep a watchful eye on the trends in the coming years.