Competition of electric vehicles and fuel production in the 21st century: opportunities and challenges

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The oil and gas industry is very influential in the automotive sector. Globally, 99% or 1.4 billion cars that are driven are conventional cars with internal combustion engines (ICE) that consume fuel. (Setiawan, 2021). However, with the changing times until the 21st century, the trend of electric vehicles is more and more dominant as an effort to renew the carbon emissions which have an impact on the pollution of the environment so that the vehicles Electric vehicles continue to develop rapidly until now and within a few years, electric vehicles will replace conventional vehicles which still use an internal combustion engine (ICE) which still consumes fuel.

As modern diplomacy writing, this will have an impact on the global demand for oil which will decrease. Global demand for oil is expected to drop drastically, it is even estimated that it will drop by up to 70%. Currently, the largest oil imports are known to account for 1.5% of China’s GDP and 2.6% of India’s GDP (Dananjaya, 2020). If electric vehicles are able to occupy a third of the market by 2040, it could lead to a drop in fuel demand by up to 9 million barrels per day, or about 90% of production in Saudi Arabia every day. (Aszahri, 2017). Therefore, with the development of times and technology from year to year, electric vehicles are being created in the world nowadays, it is true that electric vehicles were created as a good form of effort for the sustainability of our lives in the world, because electric vehicles, the air pollution from conventional vehicles that we usually get is bad, but when electric vehicles are present, environmental pollution from carbon emissions is reduced. One form of environmental pollution is pollution emitted by conventional vehicles that still use fuel. On the other hand, the oil and gas industry is threatened by the global demand for oil. For the oil and gas industry to have the potential to reduce the global demand for oil, if the oil and gas industry cannot seek opportunities in the current and future technological age, it will be very risky for the industry.

Although in the previous 21st century, energy, especially oil, was needed everywhere as a driving force for daily human activities such as transportation, delivery of goods, sanitation, water supply systems , agriculture and construction. However, as the world enters the 21st century, the world is slowly changing its energy management to minimize carbon emissions, where this increase in emissions is due to high global carbon production which in turn adversely affects the environment and disrupts daily human activities due to poor air quality. Therefore, with the competition between electric vehicles and oil production in the 21st century, this phenomenon can be a seized opportunity, which with the existence of electric vehicles, can harm the environment. In addition, with the existence of electric vehicles, it fits the vision and mission of the Paris Agreement to reduce greenhouse gas emissions by 29% by 2030 without foreign intervention and to target the ‘use of renewable energy by 23% by 2025, which shows that every country that ratifies the Paris Agreement must be independent in reducing carbon emissions in their country as a strategy to create a world with a clean environment. As for the Paris Agreement, it emphasizes five points that must be respected by ratifying countries, including mitigation efforts by rapidly reducing emissions, a transparent system of carbon accounting and emission reduction, seeking to strengthen the capacity of countries to overcome the negative impacts of climate change, implement recovery efforts caused by climate change and provide assistance in the form of finance to countries to build green and sustainable economies (Windyswara, 2019). So, with the five agreed points of the Paris Agreement, indirectly, the existence of electric vehicles now reflects the five points mentioned above. Research from the European Energy Agency explains that carbon emissions from electric vehicles are around 17-30% lower than from gasoline-powered electric vehicles (European Environment Agency, 2018). In addition, the presence of electric vehicles helps to minimize dependence on energy supplies from other countries as electricity is a source of domestic energy. So far, countries are very competitive to meet their country’s oil supply, which can lead to a peak oil situation where oil production is at its peak in the future.

What about gasoline? Can gasoline survive in the midst of the existence of electric vehicles?

Indeed, with the high production of electric vehicles in the 21st century, it could have an impact on oil production. This leads to a drop in global demand for oil and the use of fuels such as gasoline begins to slowly decline. It can therefore be difficult to know how oil suppliers can play their part in preparing other, more sustainable long-term plans that not only focus on refueling a vehicle, but can maximize the creation of a vehicle. element in which oil and gas can be the main driver of machinery in addition to vehicles. In addition, the role of gasoline can be maximized in other sectors as well as in the manufacture of raw materials for goods, the chemical industry which transforms several construction products, the production sources of polymers, and of other productions which require petroleum in the management of a product. Therefore, with the current production of electric vehicles, electric vehicles do not become a threat if innovation continues to develop, technology continues to improve, so fuel is still needed and important.


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