The stock of BP plc (ADR) (NYSE:BP) closed at $ 36.27 gaining 3.22% in yesterday’s trading session. Currently, the provider is in talks with the various electric vehicle makers. They hope to reach an agreement that will see them partner towards offering battery re-charging docks.
This will most probably take place at the company’s global network of fuel service stations. It hopes to gain from the move away from petrol and diesel cars as stipulated by Bob Dudley, the company’s Chief Executive.
The coming decade could witness a rapid growth in the use of electric vehicles. However, this isn’t auguring quite well with the various oil companies who observe it as a major threat to their business model.
Some oil company estimates provide that the demand for road fuels could vanish as early as the 2020s. A closer outlook at the slice of the growing market has now compelled the London-based BP to start looking out for ways to get involved in the sector. In one of his recent interviews, Dudley opined, “We have discussions going on with a lot of the EV manufacturers to have a tie-up with our retail network for charging.”
The company’s rival, Royal Dutch Shell plc (ADR) (NYSE:RDS.A) is at the moment launching a pilot scheme. This will have it install battery charging docks in a wide range if its service stations situated in the Netherlands and Britain.
There are forecasts at the moment which outline that the number of electric vehicles on roads will go up in the coming decade. This will especially be in the big cities and BP has estimated that they will hit the 100 million mark by 2035.
Dudley is coming out clearly as a rather vocal advocate of the gas and oil industry. He is seemingly advocating for the great need for different product providers to shift from fossil fuels. Instead, he advises that they should resort to using some cleaner sources of energy.