Norway’s adoption of electric vehicles is miles ahead of any other country. As of right now, electric vehicles overtook combustion engines in the market, with 52% of cars sold being EVs. Now, it’s looking like that might have a pretty big impact on the oil industry.
The prevalence of EVs in Norway gives us a pretty good look into what the future might hold for the rest of us, who are a little slower at adopting electricity. The government wants to go fully electric by 2025, so they’ve started offering buyers generous subsidies and tax breaks to encourage people to go all-in.
Norway, though, is a well-known oil exporter. If they’re working to erase their carbon footprint in their own country, you’ve got to start wondering if that’s going to affect the oil industry as a whole. Now, according to both OilPrice.com and Electrek.com, that’s starting to happen.
Consumption of gasoline and diesel has declined since 2014—not massively, but enough to start wondering what’s going to come in the future. Only 10% of vehicles on the road in Norway are electric, despite the increase in sales, due to the evolving technology and infrastructure required to charge and maintain an EV. But even that small of a change has resulted in a 2.9% decrease in gasoline prices. It’s the first time a result like this has resulted from the adoption of EVs.
It only looks like that kind of decrease is going to keep snowballing in the future. If Norway wants to be completely free of internal combustion engines in seven years, you’re going to see a massive drop in oil consumption start picking up as EVs become more widely adopted across the board. The oil industry is going to take a massive hit.
And it’s starting to suggest a future where the oil industry might just be phased out entirely. If one of the world’s top exporters of oil is lambasting the issues associated with oil, then it’s going to be hard to justify continuing to buy into that industry. It’s hard to know what, exactly, the future is going to hold, but it’s looking to be one powered by electricity.
It’ll be interesting to see how this plays out as the years pass. We’ve only seen the very tip of the iceberg regarding the way EVs can transform not only entire countries but entire worldwide industries—there’s plenty more waiting to be revealed.