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BP Executive Says Fast EV Chargers Almost as Profitable as Gas

BP Executive Says Fast EV Chargers Almost as Profitable as Gas

Oil has been a huge employer and a significant source of income for companies and some countries for decades. Many of us in the industry wondered what would become of oil companies once we switched to electricity and now, we know.

 

A recent interview with Emma Delaney, BP’s head of customers and products, showed us that BP at least, knows where the future lies.

 

"If I think about a tank of fuel versus fast EV chargers, we are nearing a place where the business fundamentals on the fast charge are better than they are on the fuel."

 

In the interview, Delaney said fast EV chargers were almost as profitable as gas pumps. She also said BP were planning to shift away from oil towards power and energy, including for EVs.

 

While she didn’t go into detail about how much profit BP was making from fast charging, the news that they are almost as profitable as gas is good news.

 

That’s probably why BP will be expanding its EV charging business from 11,000 chargers right now to 70,000 charging points by 2030.

 

"Overall, we see a huge opportunity in fast charging for consumers and businesses, as well as fleet services more generally - that's where we see the growth, and where we see the margins," Delaney said.

 

Fast chargers are now a viable business

 

After years of being a loss leader, fast chargers are now becoming a viable business.

 

That means companies like BP are getting on board and will bring their R&D departments with them. Charging could be cheaper, faster and more common, which is good news for everyone.

 

While batteries are still the main limiting factor for EVs, having a network of charging points on main highways and transport links can offset a lot of that.

 

The idea of sitting and having a coffee while your car charges for 15 minutes is much more palatable than the fear of running out of charge partway through a journey.

 

This also feeds into BPs plans to strengthen its convenience store and retail businesses as they are extremely profitable. Combining seating or waiting areas with hot drinks and snacks could improve margins significantly.

 

Not the only oil giant switching to electric

 

BP isn’t the only oil giant planning to diversify into electricity and EV charging. Shell is another company doing exactly the same and we imagine others are thinking about it too.

 

The tide is definitely turning and EVs are the future. While they may be accompanied by other clean fuels like hydrogen, electricity is the way forward right now.

 

That means the gas and diesel markets are severely time limited. Most of Europe has committed to phasing out fossil fuels and the rest of the world will eventually join them.

 

So, however attached to your V6 or V8 you may be, the availability of the gas to power it has a time limit.

 

The good news is, the more corporations get in on the action, the more resources there are to make it more practical and more palatable.

 

Check out the range of Kia EVs at Grimsby Kia, 435 South Service Road Grimsby, ON L3M 4E8.

 

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

 

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