The future of carbon-neutral energy and its effect on the oil industry

Recent findings from BloombergNEF show that rapid EV growth will potentially disrupt the oil industry. In 2022, the electric car market experienced unprecedented growth following the sale of 10 million EVs. The data indicates a link between increased EV adoption and a significant decline in oil demand.  

A standard combustion engine vehicle can consume as much as 11 barrels of oil equivalent (BOE) per year, with electric passenger vehicles predicted to save 886,700 barrels per day by 2025 in the United States.

Data from Imperial College London demonstrates how wind turbines have generated more electricity than gas for the first time in UK history. Policymakers and those with stakes in the oil market have been urged to explore developments in the evolving energy landscape to support the recent surge of EV adoption. Investment in alternative fuel sources is crucial to the electrification of transport.

Solar and wind have seen significant growth in the UK. In the first quarter of 2023, 42% of the UK's electricity came from renewable energy, with 33% coming from fossil fuels like gas and coal. The growth of alternative carbon-neutral fuel sources aligns with the UK Government’s desire to not only decarbonise transport but achieve net zero energy emissions by 2035.  

In response to the study funded by Drax Electrical Insights, Imperial College London’s energy researcher, Iain Staffell, claimed, “There are still many hurdles to reaching a completely fossil fuel-free grid, but wind out-supplying gas for the first time is a genuine milestone event.”

In December 2022, Prime Minister Rishi Sunak agreed to evaluate current planning restrictions on onshore wind turbines that have slowed the development of UK wind farms to allow alternative carbon-neutral energy sources to flourish ahead of the 2035 net zero deadline.  

Zest is striving to make net-zero fuel sources a reality with all of Zest chargers being 100% powered by renewable energy whilst rolling out publicly accessible charging infrastructure to make EV a realistic option for UK citizens.

Backed by the £420m government sponsored Charging Infrastructure Investment Fund (CIIF), Zest is partnering with local authorities and commercial landowners to fund, deploy, and manage a nationwide public charging network, preparing the UK for the electric vehicle revolution and helping the country on its way to a net zero future.

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