According to Sam Evans, known as the Electric Viking, a global bank has issued a stark warning about the future of gas stations. Evans discusses the findings from a recent report which indicates that thousands of gas stations are on the brink of bankruptcy due to the rapid rise of electric vehicles (EVs). This transformative shift in the automotive industry is predicted to lead to widespread closures, especially in regions where EV adoption is soaring.
The Netherlands and Norway: Frontline of Change
Evans begins by highlighting the situation in the Netherlands, where mainstream media recently published alarming front-page news. The report suggests that up to 50% of gas stations in the country could shut down within the next five to ten years. The scenario in Norway is even more severe, with a higher rate of closures expected due to the country’s leading position in EV adoption. This trend is not isolated to these nations but is evident across Europe and extending into China.
Small Businesses at Risk
A significant portion of the impending closures will impact small, independently-owned gas stations. These businesses, often family-run, face immense pressure from larger oil companies that can afford to operate at a loss. Evans expresses a mixed sentiment about this development, recognizing the hardship for small business owners but acknowledging the environmental benefits of reduced fossil fuel consumption.
The Role of EVs in Market Disruption
The core reason behind the decline of gas stations is the increasing market share of EVs. Evans explains that as more consumers switch to electric vehicles, the demand for gasoline decreases, directly impacting gas stations’ profitability. In the Netherlands alone, there are currently 4,131 fuel locations, but ING Bank’s research predicts that only 2,000 will remain in operation within a decade.
Economic Implications
ING, one of the world’s largest banks, conducted comprehensive research to arrive at these conclusions. Their findings indicate that many gas stations will not generate sufficient earnings to sustain operations. Small, unmanned stations are expected to be the first casualties, followed by larger, more established ones. This wave of closures is described as a “deforestation” of gas stations, particularly in border regions where the transition to EVs is accelerating.
A Broader European Trend
The trend is not limited to the Netherlands. Similar patterns are emerging in countries like Sweden and Norway, where EVs represent a significant portion of the automotive market. In Sweden, EVs hold double the market share compared to the Netherlands, and in Norway, the figure is even higher. This widespread adoption of EVs is driving a rapid and, in many cases, unexpected decline in traditional gas stations.
Consumer Behavior and Environmental Benefits
Evans notes that many consumers in these progressive countries are opting for EVs not just for cost savings, but also for environmental benefits. The reduction in air pollution and greenhouse gas emissions is a significant advantage. Many EV owners are also installing solar panels, further decreasing their dependence on fossil fuels and driving the decline in gas station usage.
The Speed of Market Disruption
Evans draws a parallel between the current shift to EVs and the rapid adoption of smartphones. Initially, smartphones were expensive and adoption was slow, but once prices dropped, the market transformed swiftly. He predicts a similar trajectory for EVs, suggesting that the decline of gas stations will accelerate as more consumers make the switch.
“A Gain For Everybody Else”
People in the comments shared their thoughts: “No need to get emotional about gas stations going out of business. They go the sane way as tobacco cigarette vendors, horse-carriage drivers, telephone switchboard operators, etc, etc. A small number of people get hammered but a gain for everybody else. They can’t go soon enough to help save the planet. That’s the bottom line.”
Another commenter shared a personal experience: “A new Exxon station opened a few months ago about a mile from my house. When it was being built, I saw some construction going on off to the side of the station. I thought, good, they’re putting in charging points. Nope. It was a small dog park! Someone is not thinking ahead. Motels, schools, restaurants, shopping centers, grocery stores all should be putting in chargers. Some are. When the gas stations close down, I hope the underground tanks are removed before the fuel leaks into the groundwater.”
Preparing for the Future
As the transition to electric vehicles continues, Evans advises those with investments in gas stations to consider selling before it’s too late. The disruption curve is already evident, and the shift towards cleaner, more sustainable transportation solutions is likely to render many gas stations obsolete. This prediction underscores the need for adaptability and forward-thinking in the face of technological and environmental change.
Economic Transition
What do you think? How can governments and businesses support small gas station owners in transitioning to new business models as EV adoption increases? What additional measures can be taken to accelerate the adoption of EVs and further reduce our reliance on fossil fuels? How will the decline of gas stations reshape urban and rural infrastructure in the coming decades?
Watch the entire video on The Electric Viking’s YouTube channel for more information here.
