×

Gas stations challenged by evolution

Few residents of the Southern Alleghenies region probably have given much thought to how gasoline stations of today might have to change as more and more electric vehicles populate America’s roadways.

Those who think they will not live long enough to witness whatever the changes ultimately will be need to shift their attention to a higher gear.

The fact is those changes already have begun to be implemented, if not in a way that can be deemed drastic, then in a way that can accurately be described as managed evolution.

Meanwhile, if you have the time and interest to seek information about what is happening overseas, you might be further convinced that the change in question is closer than you had realized.

The fact is that there already are electric vehicle charging stations in this region, because electric vehicles already are traveling this area’s roadways.

If the price of electric vehicles were to decrease markedly, the managed evolution referred to earlier would become more deeply entrenched much sooner.

Likewise, if vehicle production by automakers were to shift away more quickly from gasoline-powered units than what currently might be anticipated or already underway, the predicted evolution would occur at a much faster pace.

Under the headline “The energy industry prepares for upheaval at the gas station,” the Wall Street Journal, in its March 18-19 edition, made clear that there will be much new investment coming in the not-too-distant future to catapult gasoline stations into the future — to address future needs and realities — even though electric vehicles still are a small share of cars on the road at this time.

“The shift to more sustainable sources of energy will change how people use gas stations,” the Journal said. “Instead of everyone filling their tanks at the pump, some drivers will need fast-charging points, while others might eventually want low-carbon fuels. Gas stations will need to cater to a wider variety of technologies than in the past.”

Then came the Journal’s view on how the physical features of gasoline stations probably will have to change.

“It will also be important to be a good retailer,” the Journal pointed out. “A customer refueling a conventional car spends five to six minutes on average near the pumps. Even with fast charging, an EV owner might hang around for 25 minutes.”

Thus, there is an opportunity that more and more oil and gas companies are coming to recognize — that being well-stocked with the kinds of non-fuel offerings motorists purchase will build their profits inside their walls while the other understandably more lucrative profit-making occurs outside in keeping electric vehicles running.

According to the March 18-19 Journal report, Shell and BP are both aggressively expanding their EV-charging networks and have been boosting non-fuel sales for some years.

“Combined, the two energy giants sell coffee equivalent to 10% of Starbucks’ global sales, according to Bernstein Research,” the newspaper said.

BP says the returns on investment in the convenience and EV-charging business are lower than in oil and gas exploration — roughly 15% compared with 20% — but with less commodity risk and volatility.

It is worth noting that, overseas, the evolution in question apparently is leaps and bounds ahead of America. How long it will take this country to “catch up” remains to be seen.

But for most people alive today — even senior citizens — catching up won’t wait until after they are gone.

Starting at $2.99/week.

Subscribe Today