How the Oil & Gas Industry Is Responding to EVs

How the Oil & Gas Industry Is Responding to EVs

The rapid global shift toward electric vehicles (EVs) is reshaping one of the world’s most powerful sectors — the oil and gas industry. For over a century, this industry has fueled economies, powered transportation, and influenced geopolitics. But with EV adoption accelerating and governments setting ambitious carbon reduction goals, oil companies are being forced to adapt or risk obsolescence.

This transformation is not simply a story of decline but also one of reinvention. The oil and gas giants that once dominated the energy landscape are now exploring new frontiers — from investing in renewable energy to building EV charging infrastructure and researching alternative fuels. In this article, we’ll explore how the oil and gas industry is responding to the EV revolution, what strategies they are deploying, and what the future might hold for this dynamic global sector.

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1. The Growing Threat of EVs to Oil Demand

Electric vehicles are no longer a niche product. According to the International Energy Agency (IEA), global EV sales surpassed 14 million units in 2024, accounting for nearly 20% of total car sales worldwide. With EVs requiring no gasoline or diesel, each one that replaces a traditional internal combustion engine (ICE) vehicle reduces oil demand.

Historically, transportation has been the backbone of oil consumption. Around 60% of global oil use comes from road transport — cars, trucks, and buses. As EVs become more affordable and charging networks expand, this dominance is under pressure. Some analysts predict global oil demand could peak before 2030, driven primarily by the widespread electrification of vehicles.

For oil companies, this represents both a financial and existential challenge. Their long-term survival depends on how effectively they can pivot away from their traditional reliance on fuel sales.

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2. Investing in EV Infrastructure

One of the most direct ways oil companies are adapting is by investing in EV charging infrastructure. Major oil firms are transforming their gas stations into multi-energy hubs, offering electricity alongside gasoline and diesel.

Shell

Shell has been among the most proactive. The company has acquired several EV charging networks, including NewMotion in Europe and Greenlots in North America. Shell aims to operate over 500,000 EV charging points globally by 2025. Many of its gas stations now feature fast chargers alongside fuel pumps, symbolizing a tangible shift in focus.

BP

Similarly, BP (British Petroleum) is betting big on EVs. Its BP Pulse division is rapidly expanding across the UK, Europe, and the U.S. BP’s strategy focuses on ultra-fast charging technology, enabling drivers to recharge 100 miles of range in just 10 minutes.

TotalEnergies

French energy giant TotalEnergies is another key player. The company has been rebranding itself as a “multi-energy company” and has installed thousands of chargers in Europe, especially in France and the Netherlands. Its long-term goal is to make renewable electricity and EV services a major part of its revenue mix.

These initiatives highlight a crucial realization within the oil and gas industry: the future of mobility includes electrons, not just hydrocarbons.

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3. Diversifying into Renewable Energy

Beyond EV infrastructure, many oil and gas companies are diversifying their portfolios by investing in renewable energy projects — solar, wind, hydrogen, and biofuels.

Shell and BP have invested billions in offshore wind farms and solar power.

TotalEnergies has committed to becoming carbon-neutral by 2050 and is investing heavily in renewable power generation.

Equinor, Norway’s state-owned energy giant, is a global leader in offshore wind projects.

These moves reflect a strategic shift from being “oil companies” to becoming “energy companies” — a rebranding that emphasizes sustainability and innovation.

However, it’s important to note that renewables currently account for only a small percentage of their total operations. Despite the green rhetoric, oil and gas still form the core of their profits. Yet the trend is clear: the energy mix of the future will be far more diverse.

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4. Hydrogen as a Bridge Fuel

One of the most promising areas for oil and gas companies lies in hydrogen energy. Hydrogen can power vehicles, generate electricity, and store renewable energy. Because it can be produced from natural gas (with carbon capture) or from renewable sources (via electrolysis), it provides a potential bridge between fossil fuels and a zero-emission future.

Companies like Shell, BP, and Chevron are heavily investing in hydrogen production and distribution. For example:

Shell has opened hydrogen refueling stations in California and Europe.

BP is leading projects in the UK and Australia to produce green hydrogen from wind power.

Chevron has announced partnerships to expand hydrogen infrastructure in the United States.

While hydrogen fuel-cell vehicles remain less common than battery EVs, many experts believe that hydrogen will play a major role in decarbonizing heavy transport, such as trucks, ships, and buses.

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5. Developing Carbon Capture & Storage (CCS)

Another significant adaptation strategy is carbon capture and storage (CCS) — a technology that captures CO₂ emissions from industrial processes and stores them underground. Although CCS does not eliminate the use of fossil fuels, it mitigates their environmental impact.

Oil and gas companies are uniquely positioned to lead this technology, thanks to their deep expertise in geological storage and drilling operations. For example:

ExxonMobil is developing one of the largest CCS projects near Houston, Texas.

Shell operates the Quest project in Canada, which has already stored millions of tons of CO₂.

TotalEnergies and Equinor are collaborating on the Northern Lights project in Norway, aimed at building Europe’s first large-scale CO₂ transport and storage network.

CCS may allow these companies to continue producing energy while working toward net-zero emissions, making it a cornerstone of their transition strategies.

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6. Reimagining the Business Model

The oil and gas industry’s traditional model — extracting, refining, and selling fuel — is being challenged by the EV revolution. In response, companies are exploring new business models to stay relevant.

Some are investing in energy trading platforms, others in battery recycling, and some in smart grid technologies. The goal is to remain key players in the evolving energy ecosystem rather than being sidelined by tech-driven startups and renewable competitors.

In essence, they are preparing for a future where energy will not only be consumed differently but also produced, distributed, and stored in new ways.

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7. Government Pressure and Greenwashing Accusations

Despite these efforts, critics argue that many oil companies are moving too slowly or engaging in greenwashing — promoting small-scale green initiatives while continuing massive investments in fossil fuels.

Governments, investors, and environmental groups are demanding more transparency and faster action. In response, regulatory frameworks such as the European Union’s Fit for 55 plan and the U.S. Inflation Reduction Act are pushing companies toward cleaner operations.

Public opinion is also shifting rapidly. Younger generations view oil giants with skepticism, pressuring them to prove their commitment to sustainability through real, measurable results.

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8. The Road Ahead

As EV adoption continues to grow, oil and gas companies face a defining decade. Those that embrace innovation, diversify into cleaner energy, and align with global climate goals are likely to survive — and even thrive.

Those that resist change risk fading into irrelevance as transportation electrifies and renewable energy costs continue to fall.

In short, the future of oil and gas will depend not on drilling deeper into the earth, but on investing smarter above it — in electrons, not barrels.