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ELECTRIC VEHICLES GAIN A JOLT
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One
of the most staggering effects of this year's geopolitical turmoil and
oil market volatility has been a surge of interest in electric vehicles
(EVs) — an important indicator of future oil demand around the globe.
The
growth in EV uptake has been especially strong in places that are both
hard-hit by higher fuel prices but have also expanded their access in
recent years to China-produced EVs, which are increasingly
cost-competitive with internal combustion engine vehicles.
Australia,
for example, has emerged as a dark horse in EV adoption. Sales have
been surging in the last few months despite the country’s expansive land
mass, range issues and patchy charging infrastructure. The share of EVs
in light vehicle sales rose from 11%-15% in 2025 to an eye-popping 35%
in the second quarter of this year, buoyed by rising fuel prices, an
expanding menu of EV models and supportive policies by the current Labor
government.
Similarly, the fuel crisis has helped Latin America
shake off its previous status as a longtime straggler in EV adoption,
which has dovetailed with increasing access to Chinese models from
manufacturers such as BYD and Geely. Brazil and Colombia have seen
particularly stark jumps in the share of EVs in overall new light
vehicle sales.
Another noteworthy example is Russia. The ongoing
fuel crisis stemming from wide-scale Ukrainian attacks on the country's
refining sector has prompted a surge of interest in EVs — especially
plug-in hybrids, which hit 8% of sales in July, up from 2% in July 2025.
General consumer skepticism in the world's geographically largest
country remains stiff, however.
Skepticism is also evident in
the US, the world's largest oil-consuming nation, which has seen no
uptick in EV sales this year. The country has offered no welcome mat to
Chinese EVs and is still reeling from policy reversals last year that
hit sales.
We explore these topics and more in this week’s Conversation of the Century, featuring:
- An analysis examining the surge of interest in plug-in hybrids in Russia;
- A feature on the EV sales uptick in Australia;
- Clara Tan, reporting how Japan is edging forward with its hydrogen and ammonia ambitions;
- Paul Henty, partner at Beale & Co. Solicitors, with an opinion piece that discusses the role of decarbonization and other topics related to offshore engineering juggernaut Saipem7; and
- Hasan Karam, COO of petrochemicals company Borouge, with an opinion piece on how AI is defining leadership in petrochemicals.
I'm Lauren Craft, your guest editor and guide for the Conversation of the Century. Contact us here to share your feedback or ask a question. | | | |