How quickly Canadians change to electric vehicles (EVs) will impact Canadian oil, gas, power and utilities companies in the years forward, according to a report printed Monday by Ernst & Young (EY).
EY research shows that fast adoption could mean as many as 13.2 million EVs on the road by 2030.
Already, Canada is the 10th-quickest adopter of EVs in the world, says EY, with sales rising 165% year over year in 2018.
“Electric vehicles have the prospective to profoundly reshape everything from local transit to worldwide commerce, and Canada’s energy players are not going to be resistant from this impact,” stated Lance Mortlock, EY Canada oil and gas leader, in a declaration.
“Companies should be questioning themselves not only how quickly EV acceptance will unfold, but also whether they’re taking the right tactical steps to prepare for this momentous shift. Now is the time to finance in future-proofing.”
Rapid adoption — with EVs demonstrating 30% of Canada’s vehicle stock, compared to less than 3% today — would decrease domestic oil consumption by roughly 252k barrels each day, EY research finds, and could activate convergence among energy companies.
“Diversifying portfolios will be vital for oil and gas companies in a rapid-adoption forthcoming,” Mortlock stated. “To stay relevant and ensure moneymaking revenue streams, they’ll need to invest more in clean energy, petrochemical goods and access to tidewater to enter new markets.”
Rapid acceptance could also cause an 11% spike in Canadian electricity request, EY stated, requiring utilities to make important investments in existing grid infrastructure to allow customers to charge cars at home and in public spaces. Dissemination network upgrades would also be essential to improve power transmission across the country, including to rural zones.