The increase in the number of electric cars on the road necessarily requires an increase in the number of charging stations, which opens new business opportunities for oil companies to become interested in this field of investment. One of them is the British company Shell, which intends to increase the number of its electric charging stations.

The British company announced the “Energy Transition Strategy 2024” plan, which includes investment in the construction of charging stations. However, this requires a large amount of money, and the first move Shell intends to make is to sell 1,000 of its current oil stations over the next two years.

In 2023, Shell Recharge EV had 27,000 electric chargers in various locations around the world, and last year that number was increased to 54,000 chargers. Now, the company intends to increase the number of chargers to more than 300,000 worldwide by the end of the decade.

“There are about 40 million electric and plug-in hybrid vehicles on the road in the world today, and by 2030 there are expected to be 275 million. The availability of chargers will be critical for the growth of electric vehicles,” the company said.

Although Shell’s chargers are not compatible with the Tesla Supercharger or Electrify America networks, the British company has over 3,000 chargers in 31 US states, and more than 3,400 additional chargers are in development. Also, Shell Recharge EV last year opened its largest electric vehicle charging station (258 chargers) at the airport in Shenzhen, China. It was a good business decision considering that data shows that more than 3,300 electric vehicles use this station every day.

Shell believes that the demand for oil will decrease over time and that gasoline will not be primary in the future. “We believe that oil demand growth will slow down in the second half of this decade, and a more intense decline could occur in the next decade due to increased efficiency and growth in sales of electric vehicles,” the company said.

Source: Bloomberg