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

Page 1 of 2

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.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!