I’m going to assume that you are already aware that this is just the beginning of the EV revolution, that the use of fossil fuels is not good for the environment, that there is a trend toward ESG investing, and that this isn’t just a socialist/communist/capitalist debate (Tesla/Elon Musk have proven this).
In this blog I’ll give specifics to what I think Big Oil can do to survive and thrive over the next ten years. Well, actually it’s just one thing they can do.
First, they can add two superchargers to each “gas station”. It’s not difficult and it’s scalable. The margins at a supercharger are huge. I can assume Tesla is paying less than I am at my house for power and compared to what they charge, it’s a big markup. What this does is it takes the range issue off the table. It guarantees EVs other than Tesla can get charged fast. In a recent survey, Tesla owners complained about the lack of ability to get food at supercharger locations, so this is a win for the stations that sell food and snacks.
Now let’s talk about what they’ll actually do because my bet is they won’t take my advice. Big Oil collectively will gaslight the public. You’ll see articles about how they are investing in solar/wind and how Big Oil actually wants to be Big Wind. You’ll see Exxon bringing back the commercial about how they are researching algae as a possible fuel source. All BS designed to take the heat off of them. They’ve done this before. The difference now is you have a company that has an ever expanding supercharger network that IMO is a monopoly (subject of a future blog). That company is loaded with cash because their stock price is approaching $1100 a share.
In the end, this is going to become an “evolve or become extinct” type of situation, comparable to what happened in the telecommunications revolution in the mid- to late 90’s. So Big Oil, what’s your choice – evolve or become extinct?