According to Exxon Mobil CEO, by 2040 every new passenger vehicle sold worldwide will be electric

According to Exxon Mobil CEO, by 2040 every new passenger vehicle sold worldwide will be electric

According to BNEF projections, 20 million plug-in cars will be on the road worldwide by the end of June, marking yet another significant milestone in the adoption of electric vehicles. Amazing growth considering there were barely 1 million EVs on the road in 2016. Electric vehicles (EVs) are the future, according to Exxon Mobil.

According to the oil company, by the year 2040, all new passenger vehicles sold worldwide will be electric, Chief Executive Officer,¬†Darren Woods informed CNBC’s David Faber in a discussion. As per market research firm Canalys, electric vehicles, comprising plug-in hybrids, will make up barely 9 percent of all passenger vehicle sales in 2021. According to Canalys, that amount increased by 109% from 2020.

According to Woods, Exxon Mobil is assessing how the drop in gasoline sales would affect its business in light of its modeling. One of the biggest international gas corporations that are publicly traded and a leader in the sector is Exxon Mobil. On its website, it makes a big deal about being the biggest “refiner and marketer of petroleum products” and a chemicals company.

Chemicals, according to Woods, who spent a portion of his career working on the company’s chemical operations, will be essential to maintaining the business’ profitability throughout the clean energy transformation. Electric vehicle manufacturing can employ the plastics produced by Exxon Mobil. According to ExxonMobil’s estimations, the world’s oil consumption in 2040 will be equal to that of 2013 or 2014. The business was still profitable at the time, Woods said to CNBC.

“That shift will not greatly affect this firm or this sector quite simply,” said Woods, who didn’t appear perturbed by the prediction.

According to projections from BNEF, the worldwide fleet of EVs will grow by about a million per month by the second half of 2022. That is around one every three seconds. Age, normal wear and tear, collisions, and battery deterioration all lead to the eventual retirement of vehicles from the fleet. The majority of the EVs in the worldwide fleet was purchased in the last 18 months, therefore that is why it hasn’t played a significant role in the EV story up to this point. BNEF predicts that there will be more than 26 million plug-in cars on the road by the end of 2022.

Many established players in the automobile and energy industries weren’t expecting the kind of expansion it is at now. For instance, BP projected that by 2035 there would be 71 million plug-in cars on the road in 2016 outlook. According to the most recent sales statistics, BNEF now projects that goal will be met by 2025, which is a full 10 years earlier than expected.

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