Tesla Motors Inc (TSLA), Chevron Corporation (CVX): Gas Stations Versus Charging Stations

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Perhaps oil and gas investors who have been following the growth of the electric vehicle, or EV, space might have been a little worried that the oil and gas industry would collapse by the time the EV industry starts living its dream of making the whole world go all-electric. I, on the other hand, don’t believe this would be the case. Nobody wants to go out of business. Oil and gas companies can’t have it as an option.

While many see the evolution of the EV space as a threat to the oil and gas space, I see it as the “right” competition that would make oil and gas companies go back to their drawing boards, and map out strategies that would ensure that they remain relevant. From such competition, oil and gas investors would benefit from an improved oil and gas space that’s been forced to find a sustainable solution to global-warming and a worthy investment option in an Apple-esque EV space.

Tesla Motors Inc (NASDAQ:TSLA)

I like to think that the lack of adequate competition is one big reason our environmental issues got to the current level. According to the Union of Concerned Scientists USA, or UCSUSA, one gallon of gas burned emits about 25 pounds of carbon dioxide and other global warming gases into the atmosphere. UCSUSA also found that about 30% of America’s total global warming emissions come from vehicles.

Where do the gases come from? From gas stations, of course. Where do gas stations get the gas they sell? From oil and gas companies obviously. So, I won’t be wrong to say oil and gas companies contribute about 25 pounds of carbon dioxide and other global warming gases into the atmosphere for every one gallon of gas they process.

I know you want to ask how we would drive our cars without these oil and gas companies. Of course, we need them. But what they contribute to global warming wouldn’t be this much if the “right” sort of competition existed. I said “right” because there are competitors obviously. After all, there’s more than one oil and gas company. But what makes it the “not-right-competition” is the fact that just about all oil and gas producers go about their businesses the same way.

Which is where charging stations come into the picture

What would make for the right competition, in my opinion, is about an equal number of gas and charging stations. And when I say charging stations, I’m talking about Electric Vehicle charging stations. About equal number of charging and gas stations means that the population of EVs on the road is not so far from the population of traditional gas engine vehicles on the road.

Now the competition

The rightcompetition won’t exactly be between charging station owners and gas station owners. It would be between an EV space that’s quite successfully dealt with global warming emissions from autos and an oil and gas space that would be trying its best to remain important to our everyday life. This sort of competition would put all hands on deck to deal with the huge contribution of vehicles to global warming.

If we can get a hold of this, the oil and gas space would be out to make sure that the 25 pounds of carbon dioxide and other global warming gases that come from every gallon of gas do not go into the atmosphere anymore. The EV space, on the other hand, would be out to make sure that everything about EVs is clean – clean source of energy, clean battery management system, among others. This (the striving of each industry to maintain a clean environment) would happen because they both want to remain in business.

The Positive

I’ve started seeing this “right” competition. Oil and gas companies have begun to sense a strong competition from the EV space. They know that if, against all odds, the EV vision (the world going all-electric-car) is achieved, they would struggle to be as important as they are at the moment. One of the results of this competition is the Carbon Capture and Storage, or CCS, strategy, which some oil and gas companies are already getting their hands dirty with.

Royal Dutch Shell plc (ADR) (NYSE:RDSA) is one of the oil companies that’s working on CCS. Due to the heavy emission of CO2 from its Athabasca Oil Sands Project in Alberta, Canada, the company lunched the CCS project, which has the capacity of capturing over a million tons (over 2 billion pounds) of CO2 annually. Removal of this amount of CO2 is equivalent to removing about 175,000 cars from the road.

BP plc (ADR) (NYSE:BP) is the latest company to show big interest in dealing with global warming. News emerged on June 25 that BP plc (ADR) (NYSE:BP) has part-funded an emission project at a Texas cement plant, which is in addition to its investment in Skyonic CCS project.

While Chevron Corporation (NYSE:CVX) claims on itswebsitethat it has a project for reducing the emission of green house gases, the company’s CEO said something that raises my eyebrow. He said in aninterview, “Our leaders have to make a decision [about combating global warming]. Do they want that to continue, or do they have a better solution for us? So it’s not my call [to come up with solutions].” I’m of the opinion that Mr. Watson and Chevron Corporation (NYSE:CVX) at large would have a change of mind by the time the competition I’m advocating grows.

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