How can Oil and Gas companies succeed in the EV charging business?
Shifting market fundamentals, changing consumer behavior and carbon regulations drive Oil and Gas companies’ entry into EV charging business
O&G companies have fueled internal combustion engine (ICE) based mobility for more than a century and now it’s time to transition their businesses to adapt to the mobility’s shift towards electrification. Entering in the EV charging business succors O&G companies to compete as ‘exclusive’ energy suppliers for future mobility. However, it requires taking significant risks, making large capital investments, and competing with numerous players, such as Automakers, Utilities, etc., who are at the forefront of change.
Hubject Consulting’s Market Success Framework’ evaluates what works and what doesn’t for companies entering EV Charging Businesses
The following are the key takeaways from our success benchmarks of O&G players
- Everything starts with a strong vision
Recognizing shifting market fundamentals is necessary for a successful market entry. It’s not enough to adapt to changing customer behavior and regulations.
- Buy-outs are popular but need to be balanced
The market is still in an early phase which means the risk of failing is still high. It’s advisable to mitigate this risk by focusing on acquisitions as well as minority investments and strong partnerships.
- O&G goes like “go big or go home”
Capital-backed global players buy their way into the market. Only organizations that can integrate new ventures from technical, operational and human resources perspectives will succeed.
- Global trumps local
In the end, it’s about scalability. If affordable, a more global approach with EV charging fitting into an extended field of services leads to a competitive advantage.
- It’s all about the depth of value creation
A portfolio of services covering the entire value chain is crucial if O&G wants to become as relevant in the eMobility world as they have been traditionally.
Find out more in our publication about the key winning strategies that can successfully transition your O&G business towards EV charging!