What’s the future for the oil companies as sales of electric cars rise? Criticism has surfaced on electric cars, claiming that they should not be considered as ‘green’ as popularly conceived. Undoubtedly, there is turbulence in the transition from fossil fuels to clean energy, and it’s not absent from the automotive industry at all.
The switch will undoubtedly make an impact on oil companies and the FTSE 100 market. Despite there being a wide variety of electric cars out there for sale in the UK, the nationwide call for abandoning petrol and diesel cars will inevitably cause some level of disturbance and friction, no matter how good the cause.
Here are our considerations on green energy cars in relation to economy and industry:
FTSE 100 Market
The FTSE 100 are 100 companies listed by the London Stock Exchange that represent the UKs top businesses and their success rates. Subsequently, FTSE futures identify the risks in trade that allow investors, banks and brokers to exploit opportunities and avoid losses from an informed position. Put simply, it’s all a loose chart of the UK economy. So where do the green energy cars slot in comfortably with minimal chaos caused?
Cleaner and cheaper technologies will certainly cause a stir, dramatically disrupting what was once considered a lucrative playing field in car manufacturing. After all, the overhaul transcends a personal choice and instead becomes essential to enforced law, risking an alienation of consumer base as well as the industry itself. Additionally, while many simply can’t afford to drive or purchase an electric car, some may interpret this as the final straw and abandon the roads all together, pitting the automotive industry in a difficult position.
However, there is some degree of control in the change, phasing out petrol and diesel cars in the UK by 2040. This deadline date serves to gradually usher in the new era without causing rash industrial chaos, leaving room for level headed planning and policy adjustments when needed.
The Oil Companies
Of course, a switch to electric cars also alters the geopolitical landscape. However, oil industry company BP came forward to state that electric cars would not radically destabilise the oil industry, but there is a whole stack of evidence that vividly contradicts these claims.
Oil companies have been suffering more from an identity crisis than anything else, wondering what their purpose is as long-term survival gradually becomes more unlikely for their company. Additionally, a genuine commitment to climate change on their part could see a fast-tracked development in electric cars, propelling them beyond a costly niche. As some big-name oil companies claim to go green, what they are really doing is abandoning their sinking ships and jumping into the lifeboats of green energy providers. No one is convinced.
Consequently, their efforts amount to little more than a deception. The prospect of cheaper electric cars is little more than a smoke screen for them, conning consumers as their usual antics. Ultimately, green energy cars are being used by such companies to fulfil an agenda, an artificial advertising model in place of a working solution.