Electrifying the Transportation Sector: Implications for the Oil and Gas Industry

Year 2023, , 25 - 35, 29.12.2023

Ekrem Alagoz

https://doi.org/10.55088/ijesg.1260882

Abstract

This review article explores the implications of electrifying the transportation sector for the oil and gas industry. The current state of the transportation sector and the role of oil and gas in it are discussed, followed by an introduction to the concept of electrification and its potential benefits and challenges. The article analyzes the potential impacts of electrification on the oil and gas industry, including changes in demand for oil and gas and opportunities for investing in renewable energy and developing new technologies. Several case studies of companies in the oil and gas industry that are adapting to the transition to electrification are presented, including those investing in renewable energy and developing electric vehicle charging infrastructure. The role of government policies and regulations in the transition to electrification is also discussed, including incentives for electric vehicles and renewable energy and their potential impact on the oil and gas industry. The article concludes with a summary of the potential implications of electrifying the transportation sector for the oil and gas industry, along with recommendations for how companies in the oil and gas industry can adapt to the transition to electrification. Overall, the article provides a comprehensive overview of the electrification of the transportation sector and its impact on the oil and gas industry, offering insights and recommendations for industry stakeholders.

Keywords

Electrification, Transportation sector, Oil and gas industry, Renewable energy

References

• International Energy Agency. (2021). Oil market report. https://www.iea.org/reports/oil-market-report-february-2021
• International Energy Agency. (2021). Global EV outlook 2021. https://www.iea.org/reports/global-ev-outlook-2021
• EY. (2021). The future of electric vehicle infrastructure. https://www.ey.com/en_gl/power-utilities/the-future-of-electric-vehicle-infrastructure
• Deloitte. (2020). Electrification of transport: The future of energy and mobility. https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/energy-resources/Electrification_of_transport.pdf
• BP. (2021). Advancing the energy transition. https://www.bp.com/en/global/corporate/sustainability/climate/advancing-the-energy-transition.html
• Shell. (2021). Shell's new nature-based solutions business to seek 120 million tonnes of CO2 emissions reductions by 2030. https://www.shell.com/media/news-and-media-releases/2021/shell-nature-based-solutions-business.html
• International Energy Agency. (2021). Policies & measures database. https://www.iea.org/policies-and-measures
• International Energy Agency. (2021). Global CO2 emissions in 2020. https://www.iea.org/reports/global-co2-emissions-in-2020
• EEA. (2020). Electric vehicles and the energy transition. https://www.eea.europa.eu/publications/electric-vehicles-and-energy-transition
• Green, M. A. (2020). Electric vehicle batteries: Moving from environmental problems to sustainability opportunities. Science, 367(6475), 1236-1239
• International Energy Agency. (2020). Global energy review 2020. https://www.iea.org/reports/global-energy-review-2020
• BloombergNEF. (2021). Oil and gas companies' renewable investments: Driving the energy transition. https://about.bnef.com/blog/oil-and-gas-companies-renewable-investments-driving-the-energy-transition/
• Columbia SIPA. (2021). Carbon capture, utilization, and storage. https://energypolicy.columbia.edu/topics/carbon-capture-utilization-and-storage
• BP. (2021). BP Ventures invests in FreeWire Technologies to expand ultra-fast charging. https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-ventures-invests-in-freewire-technologies-to-expand-ultra-fast-charging.html
• Shell. (2021). Hydrogen. https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html
• Shell. (2021). Our energy transition. Shell Global. Retrieved from https://www.shell.com/energy-and-innovation/the-energy-future/our-energy-transition.html
• TotalEnergies. (2021). Energy transition: TotalEnergies is committed. TotalEnergies. Retrieved from https://www.totalenergies.com/commitments/energy-transition
• Repsol. (2021). Repsol strengthens its commitment to sustainability and increases its 2021-2025 investment plan to €18.3 billion. Repsol. Retrieved from https://www.repsol.com/en/press-room/press-releases/repsol-strengthens-its-commitment-to-sustainability-and-increases-its-2021-2025-investment-plan-to-18.3-billion-1.jsp
• Eni. (2021). Our decarbonization journey. Retrieved from https://www.eni.com/en-IT/low-carbon-strategy/our-decarbonization-journey.html
• Equinor. (2021). Climate roadmap. Retrieved from https://www.equinor.com/en/how-and-why/climate-roadmap.html
• ExxonMobil. (2021). Reducing emissions. Retrieved from https://corporate.exxonmobil.com/Energy-and-environment/Lower-emissions
• Chevron. (2021). Climate change resilience. Retrieved from https://www.chevron.com/corporate-responsibility/climate-change-resilience
• Petronas. (2021). Transitioning to a low-carbon future. Retrieved from https://www.petronas.com/sustainability/sustainability-approach/climate-change-transitioning-low
• Petrobras. (2021). Petrobras sustainability report. Retrieved from https://www.investidorpetrobras.com.br/en/results-and-notices/sustainability
• Sinopec. (2021). 2020 Corporate Social Responsibility Report. Retrieved from https://www.sinopecgroup.com/group/en/Sustainability/Reports/20210603/news_20210603_917182573223.shtml
• Cox, M., Brown, N. J., & Harnish, R. A. (2021). Examining the effectiveness of California's Zero Emissions Vehicle program. Transportation Research Part D: Transport and Environment, 97, 102946.
• Liu, Y., Lv, J., Chen, X., & Zhang, X. (2021). Electric vehicle subsidies in China: Analysis of adoption barriers and impact on sales. Energy Policy, 153, 112219.
• Braun, M., Day, C. J., & Krieger, J. (2021). The economic impact of renewable portfolio standards: A meta-analysis. Energy Policy, 153, 112100.
• Xu, Z., Zhang, Q., Tian, X., & Zhou, D. (2021). Feed-in tariff and renewable electricity generation: A review of the Chinese experiences. Renewable and Sustainable Energy Reviews, 146, 111
• Shell. (2021). Powering progress together: Shell’s strategy to accelerate the transition of our business. Retrieved from https://www.shell.com/energy-and-innovation/the-energy-future/shell-strategy.html
• Ministry of Energy and Natural Resources. (2019). National Renewable Energy Action Plan of Turkey. Retrieved from https://www.enerji.gov.tr/en-US/Documents/Files/Action-Plans/National-Renewable-Energy-Action-Plan-of-Turkey.pdf
• Duman, S. and Çetinkaya, E. (2019). An Overview of Electric Vehicle Policies in Turkey. Sustainability, 11(5), 1363.
• Republic of Turkey Ministry of Energy and Natural Resources. (2019). Regulation on the Use of Renewable Energy Sources for Electricity Generation by Facilities. Retrieved from https://www.resmigazete.gov.tr/eskiler/2019/11/20191102-10.htm
• Rosen, J. (2022). The Battery Race: Solid-State Technology Is Advancing Quickly. The New York Times. Retrieved from https://www.nytimes.com/2022/01/18/business/energy-environment/battery-solid-state-technology.html
• Lambert, F. (2021). Envision AESC announces plan to build a factory to produce new sodium-ion batteries. Electrek. Retrieved from https://electrek.co/2021/03/22/envision-aesc-announces-plan-build-factory-produce-new-sodium-ion-batteries/
• Atılım Enerji. (2021). Atılım Enerji'den, Elektrikli Araçların Geleceğini Değiştirecek Lityum Kükürt Batarya Projesi [Press release]. Retrieved from https://www.atilimenerji.com.tr/atilim-enerjiden-elektrikli-araclarin-gelecegini-degistirecek-lityum-kukurt-batarya-projesi/
• EDF Renewables. (2022). World’s largest battery energy storage system comes online in the UK. Retrieved from https://www.edf-re.com/worlds-largest-battery-energy-storage-system-comes-online-in-the-uk/
• Anadolu Agency. (2020, November 10). Turkey to install 1,000 electric charging stations. https://www.aa.com.tr/en/turkey/turkey-to-install-1-000-electric-charging-stations/2034086
• IEA. (2020). Global EV Outlook 2020. International Energy Agency. https://www.iea.org/reports/global-ev-outlook-2020
• Republic of Turkey Ministry of Energy and Natural Resources. (2021). Green Energy Support Scheme (GESS). https://www.enerji.gov.tr/en-US/Green-Energy-Support-Scheme-GESS-31336
• BloombergNEF. (2020, January). Electric Vehicle Outlook 2020. https://about.bnef.com/electric-vehicle-outlook/
• Shell. (2021). Energy Transition. https://www.shell.com/energy-and-innovation/the-energy-future/energy-transition.html
• TotalEnergies. (2021). Commitments and Ambitions. https://www.totalenergies.com/commitments-ambitions
• Al-Monitor. (2017, October 30). Turkey seeks to be at forefront of electric car revolution. https://www.al-monitor.com/originals/2017/10/turkey-seeks-be-forefront-electric-car-revolution.html
• IRENA. (2019). Renewable Energy Policies in a Time of Transition: Turkey. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Mar/IRENA_REmap_Turkey_2019.pdf
• Hoekstra, R., Zhang, T., van der Werff, B., Kipperman, S., van Essen, H. A., & van Wee, B. (2021). Electric vehicles and air quality: A review of the impact on the environment and public health. Sustainability, 13(7), 4072.
• Fuso Nerini, F., Tomei, J., To, L. S., & Bisaga, I. (2020). Electric vehicles and renewable energy: Empirical analysis of the literature. Renewable and Sustainable Energy Reviews, 119, 109601.
• Amnesty International. (2020). The dark side of electric cars: Exploitative labor practices. https://www.amnesty.org/en/latest/news/2020/11/the-dark-side-of-electric-cars-exploitative-labour-practices/
• Alper, Ö. E., Demirci, E., & Türkay, B. (2021). Electric vehicles in Turkey: Barriers and prospects. Renewable and Sustainable Energy Reviews, 136, 110484. https://doi.org/10.1016/j.rser.2020.110484
• BloombergNEF. (2021). Electric Vehicle Outlook 2021. https://about.bnef.com/electric-vehicle-outlook/
• International Energy Agency (IEA). (2021). Turkey. https://www.iea.org/countries/turkey
• KPMG. (2021). Electric Vehicle Incentives in Turkey. https://home.kpmg/xx/en/home/insights/2021/01/electric-vehicle-incentives-turkey.html