TPT November 2024

INDUSTRY 360

Electric vehicles are on the rise – internal combustion engines and petroleum are on the rise, too

By Eric Lundin sales engineer and marketing manager, T&H Lemont Inc

Electric-powered vehicles are nothing new. In the early days of the automobile, electric power was one of three choices, competing against internal combustion and external combustion (steam) powertrains. Speeds were modest at the time, but nevertheless an electric vehicle (EV) set an official record of 100km per hour before the close of the 19 th century. Winning races and setting land speed records were primary advertising tools in those days, and EVs set all the records before 1900. In the early days of the 20 th century, steam powered cars set two records, in 1902 and 1906. Of course, the internal combustion engine (ICE) was a contender, and its fortunes were on the rise. Eventually the ICE finished off the other two technologies. Until 100 years later. Electric vehicles reborn The shift from gasoline-powered automobiles to EVs represents one of the most significant transformations in the automobile industry and a pivotal transition in the quest for sustainable transportation. This transition, driven by technological advancements, environmental concerns and changing consumer preferences, has far-reaching implications for the economy, society and the environment. Emissions. One of the primary drivers of the transition to EVs is climate change. The transportation sector is a major contributor to global greenhouse gases, with gasoline vehicles accounting for a significant portion. As governments

around the world set ambitious targets for reducing emissions, the transition to EVs has become a focal point. Moreover, the local air quality impact of gasoline vehicles is profound. Cities plagued by smog, which commonly leads to respiratory and related health issues, are increasingly looking to EV technology to help alleviate this situation. EVs produce no tailpipe emissions, which can dramatically improve urban air quality, benefiting public health and enhancing the quality of life for residents. Battery technology. The evolution of battery technology has been a game-changer in the viability of EV use. Significant advancements in lithium-ion batteries have led to reductions in cost and improvements in energy density. This has resulted in longer ranges for EVs, reducing range anxiety, or the fear of running out of power before reaching the destination. The expansion of charging infrastructure likewise has made EVs more accessible. Initially, concerns about the availability of charging stations hindered consumer adoption. However, governments and private companies have invested heavily in creating comprehensive charging networks, including fast chargers. Economic factors. The economic landscape is also shifting in favour of EV technology. The cost of ownership for EVs is increasingly attractive compared to gasoline vehicles. While the upfront cost of EVs has historically been higher, the decreasing price of batteries and savings on fuel are making them more appealing. Furthermore, various incentives, such

Figure 2: A long-term report from the Energy Information Administration, a department of the US federal government, projects decades of drilling and extraction activity. Its latest installment of the report, Annual Energy Outlook 2023, relies on a baseline case with 16 variables. Using 14 of the 16 variables generated this graph, which shows greater petroleum production activity in 2050 than in the initial year, 2022

Figure 1: While some sources predict that the demand for petroleum will peak in 2030, a report from Goldman Sachs is more optimistic. Its baseline scenario shows demand for petroleum growing until 2034. The report goes on to say that, depending on other factors that would contribute to a different scenario, petroleum demand has the potential

to grow until 2040 Source: Goldman Sachs

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NOVEMBER 2024