As The Oil Crisis Gets Worse, The Era Of EVs Is Rapidly Approaching

The closure of the narrow Strait of Hormuz stopped oil tankers from reaching their destinations. But that’s not all. So far, more than 60 oil and gas fields have been damaged in the conflict. Even if a permanent truce is reached, these impacts will be felt for months and years to come.

About 80 percent of the captured crude oil was destined for the Asia-Pacific region. Faced with dwindling supplies, the region’s governments are implementing emergency measures such as sending workers home, banning government travel, rationing fuel and shortening school hours.

The problem is particularly acute in the Pacific. Many island nations use diesel for power generation. In response, the leaders declared a regional emergency.

Fuel import bills were already a major burden on Pacific nations, leading to efforts to switch to local renewable energy sources. Fuel bills could rise by A$933 million in Fiji, three times the health budget.

The fight for energy

When energy supplies are disrupted, leaders have three options: start up supplies, reduce use, or switch to alternatives. In the very short term, countries aim to choose a course of action.

Countries have also taken measures to reduce consumption. This can have long-lasting consequences. During the Middle East oil shocks of the 1970s, oil prices tripled and then doubled again. Authorities have responded by improving energy efficiency to achieve more with less. Final world oil demand per capita peaked in 1979 and has never recovered.

But the real difference from half a century ago is that alternatives to fossil fuels are ready to be implemented. Since the 1970s, the cost of solar panels has fallen by 99.9 percent, while the cost of wind power has fallen by 91 percent since 1984. Battery prices have fallen by 99 percent since 1991. This means that it is now viable for many nations to switch to these alternatives.

The European Union will accelerate electrification after its fossil fuel bill increased by more than $36 billion since February this year. France has doubled state aid to help households switch to electric vehicles and electrify home heating. Import-dependent South Korea gets 70 percent of its crude oil through the Strait of Hormuz. It now plans to double its renewable energy capacity within four years.

Electric vehicles at a turning point?

This year’s oil shock shows signs of creating an unplanned social turning point – a threshold for self-changes after which systems move from one state to another. Scientists warn of climate tipping points that amplify feedback and accelerate warming. But scientists also point to positive milestones – collective actions that rapidly accelerate climate action.

The rush to electric vehicles is a good example. In Australia, gasoline prices rose by almost 50 percent in March and diesel by more than 70 percent. It’s no surprise that sales of new electric vehicles are at record levels, while sales of used electric vehicles more than doubled last month. As many as 1.3 million hybrid and battery vehicles in Australia avoid using almost 15 million liters of petrol and diesel each week.

The mass transition to electric transport is global. Most new Chinese cars are powered by batteries, not oil. Every fourth new car sold in Germany is electric, which for the first time outsold gasoline cars, and their influence is getting stronger month by month.

• Also See: Everyday, 2.3 Million Barrels Of Oil Are Saved By Electric And Hybrid Vehicles