Wouldn’t it be great to reduce the amount of oil we use across the world? Well, this is set to happen in the near future, according to current trends. With the rise of electric vehicles in recent years, the future for the oil business is not looking to good.
The rise of the electric car
About 70% of the oil used in the United States, and 64% worldwide, is used on cars. So, when the Frankfurt School released a study that found that electric vehicle (EV) sales rose this year alone by 60%, that showed a huge leap forward in sustainable energy. As more and more people adopt EVs as their mode of transportation, the domino effect brings us closer to ending our reliance on oil.
This increase in EV sales occurred despite the fact that EVs have been more expensive and have a shorter range than typical gas powered cars — although prices are rapidly decreasing and range is expanding with advancing battery technology. This adoption of EVs is most likely going to increase. A study by the investment bank UBS showed that rising fuel taxes and lower battery costs will allow EVs to be competitive with gas-powered cars by 2021 in Europe and 2025 in China. They may already be competitive in many parts of the United states.
Even with the growing ascent of electric cars, it’s inevitable that the world will still need some oil for a while. But oil is a dirty fuel, and extracting it is a resource-depleting process.
New extraction techniques are making this process cleaner. This brings us the rise of the United States shale oil industry. Shale oil is created when certain types of rocks are heated up, and their byproduct is cleaner than contemporary oil. This extraction process is more environmentally friendly than typical drilling and is becoming even more efficient. Still, oil is not a clean, renewable energy source.
The path to energy freedom
Even Saudi Arabia, one of the biggest producers of oil in the world, is starting to shift their oil-dependent economy away from that fuel. They’re starting to build a sovereign wealth fund intended to wean the country off of oil. The kingdom also seeks to transition their oil holdings into an industrial company. And it’s even been making large investments in solar power.
When one of the largest producers of oil begins to transition their economy, we can see that the era of dirty fuels is coming to an end. With this, the widening accessibility of electric vehicles, and all of the other advances in making clean energy more available to everyday people, it seems as though the end of oil is indeed near.
If you’d like to be part of this with solar energy, a clean power plan, or an electric car, contact a MyDomino energy savings concierge. Your concierge will help you be part of our clean-energy future — now.