What’s Behind The Oil And Gas Attitude Toward Electric Vehicles
What's Behind The Oil And Gas Attitude Toward Electric Vehicles Forbes
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Oil And Gas Components Used In EVs
New Mexico Oil and Gas Association (NMOGA) are expected to tout the benefits of oil and gas in a state that is ranked number 2 in oil production after Texas. NM produces about 1.6 million barrels per day (bopd), which provides about 35% of the state’s revenue. In a newsletter on April 11, 2024, entitled Driving Innovation: How Oil & Gas Fuels the EV Industry, NMOGA listed the oil and gas components used in construction of an EV. The following list is excerpted from the newsletter:
- The production, installation, and maintenance of EV charging stations depend on materials and energy derived from oil and gas.
- The heart of an electric vehicle, lithium-ion batteries, relies on electrolytes derived from petrochemicals.
- The electrodes in lithium-ion batteries contain graphite and other materials derived from oil and gas.
- Plastics and polymers derived from oil and gas are integral to interior and exterior panels in an EV.
- The rubber used in tires is synthesized from petrochemicals.
- Cooling systems and lubricants in electric motors and powertrains use oils derived from petroleum.
- Hydraulic systems in EVs, such as power steering and braking, utilize fluids derived from petroleum.
EVs displace internal combustion engines and their gasoline/oil
A prediction can be made about the future of oil production based on President Biden’s goal regarding new sales of EVs by 2030. A simple zero-sum equation provides insights into the potential decline of oil and gas production in the U.S. by 2030.
President Biden’s goal is that new sales of EVs will be 50% of all sales by 2030. Let’s say 25% of all cars will be EVs by 2030, and these cars are not running on gasoline. A 25% decline in gasoline cars from today implies a 17% decline in consumption of oil in the U.S. by 2030. If supply follows demand, then a 17% decline in U.S. crude oil production would be expected by 2030—almost a fifth of oil production declining by 2030. This would be a sizable hit to oil production in the U.S.
There is a caveat: the potential demand in the U.S. may drop 17%, but crude oil sales abroad to places such as Southeast Asia might replace the demand and keep the supply up in the US.
Postscript: The Environmental Protection Agency (EPA) has a new rule, as of March 2024, that lowers tailpipe emissions, and it means that new sales of EVs will be 67% of all sales by 2032. So this new rule anticipates the decline in crude oil production would be significantly more than 17% by 2032.
Life-Cycle Emissions From EVs And ICEs
These are whole-of-life GHG emissions that include production, usage, and disposal of a vehicle. The table compares emission amounts in tons of CO2 equivalent (tCO2e). Vehicle usage is assumed to be 16 years when traveling a distance of 150,000 miles. Numbers were taken from Polestar and Rivian’s Pathway Report.
Life-cycle emissions of medium sized vehicle, in tCO2
The issues highlighted in the article are connected to SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).
Based on the article’s content, the specific targets identified are: Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets: The article discusses the use of oil and gas components in the construction of electric vehicles (EVs), which relates to the need for increased renewable energy sources (SDG 7) and the upgrade of infrastructure and adoption of clean technologies (SDG 9). It also mentions the reduction of greenhouse gas emissions from EVs compared to internal combustion engines (ICEs), aligning with climate action goals (SDG 13).
The targets identified are relevant to the issues discussed in the article. Target 7.2 focuses on increasing the share of renewable energy, which is important for reducing the reliance on oil and gas components used in EVs. Target 9.4 emphasizes the need to upgrade infrastructure and adopt clean technologies, which can support the development and production of EVs. Target 13.2 highlights the integration of climate change measures into policies and planning, which includes promoting the use of EVs to reduce emissions.
The indicators mentioned in the article can be used to measure progress towards the identified targets. The proportion of total energy consumption derived from renewable sources is an indicator for measuring progress towards Target 7.2. The CO2 emissions per unit of value added in manufacturing industries can be used as an indicator for Target 9.4. The number of countries communicating the strengthening of capacity-building for adaptation, mitigation, and technology transfer serves as an indicator for Target 13.2.
Overall, the article highlights the importance of addressing the environmental impact of EVs and the need for sustainable energy sources and infrastructure to support their production and usage. By focusing on the identified SDGs, targets, and indicators, progress can be measured and actions can be taken to achieve a more sustainable future.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: forbes.com
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SDGs, Targets, and Indicators
SDG 7: Affordable and Clean Energy
SDG 9: Industry, Innovation, and Infrastructure
SDG 13: Climate Action
Table: SDGs, Targets, and Indicators
SDGs
Targets
Indicators
SDG 7: Affordable and Clean Energy
Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
Proportion of total energy consumption derived from renewable sources.
SDG 9: Industry, Innovation, and Infrastructure
Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
CO2 emissions per unit of value added in manufacturing industries.
SDG 13: Climate Action
Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
Number of countries that have communicated the strengthening of institutional, systemic, and individual capacity-building to implement adaptation, mitigation, and technology transfer.
Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
2. What specific targets under those SDGs can be identified based on the article’s content?
– Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
– Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
– Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
– Proportion of total energy consumption derived from renewable sources (Indicator for Target 7.2).
– CO2 emissions per unit of value added in manufacturing industries (Indicator for Target 9.4).
– Number of countries that have communicated the strengthening of institutional, systemic, and individual capacity-building to implement adaptation, mitigation, and technology transfer (Indicator for Target 13.2).
