Publisher’s Points to Ponder: Will Electric Cars Impact the Oil & Gas Industry?

General Motors Corp., one of the big four automakers, announced that it plans to shift to the production of electric cars (EVs) only by the year 2035. This announcement has pushed other U.S. automakers to step up with EV production. What does this mean for the oil and gas industry, which is a significant part of Texas’s economy?

GM manufactured its first electric car, the EV1, between 1996-1999, when most people focused on the new millennium instead of electric vehicles. Although the car was produced initially to meet a California mandate, the electric car was not profitable, and its production ceased. GM’s pivot appears to be warranted in light of global warming but will hurt the oil and gas industry.

Although the oil and gas industry accounts for less than 10 percent of Texas’s economy, many people believe that the loss of jobs will negatively affect this industry. The Texas Oil and Gas Association touts that in 2019, the Texas oil and gas industry employers paid more than $16 billion in state and local taxes.

On the other hand, the oil and gas industry will not completely disappear as we rely on this industry’s products for the materials we use daily, such as plastic and computers. So, do not feel like you are betraying the industry by transitioning to an electric car. I may not be able to resist.

Have you seen the new Tesla?