Exxon Mobil thinks that it won’t be long before all the cars will be electric vehicles in the future.
The oil giant is estimating that by 2040, every new passenger car sold in the world will be electric, CEO Darren Woods told CNBC’s David Faber in an interview. In 2021, just 9% of all passenger car sales were electric vehicles, including plug-in hybrids, according to market research company Canalys. That number has gone up to 109% from 2020 says Canalys.
Woods stated that Exxon Mobil is evaluating how the reduction in gasoline sales could impact its business. Exxon Mobil is one of the largest publicly traded international gas companies and an industry leader. Its website states that it is the largest “refiner and marketer of petroleum products,” as well as a chemicals company.
Woods spent the time of his career on the chemical side of the company’s operations. He says that chemicals will be instrumental in keeping the company profitable during the clean energy transition. The plastics that Exxon Mobil produces can be used in the manufacturing of electric vehicles.
ExxonMobil’s calculations stated that oil demand in 2040 would be equivalent to what the world needed in 2013 or 2014. Woods explained to CNBC that the company was still profitable at that time.
Woods seemed unfazed by the prediction, saying “that change will not make or break this business or this industry quite frankly.”