The Future of Automotive Industry

What lies in the future of automotive industry?

Imagination is certainly a gift to humankind. While many of us have been dreaming of having flying cars and talking robots in the future, some have actually turned a part of that futuristic vision into reality.

It’s not big news that the automotive industry right now is not just about IC engines and that electric cars are on the surge. Big manufacturers like BMW, Audi, Tesla, Volkswagen, Tata and many more are spending a good amount of resources into research and are adopting new technologies. So, does that mean we’ll no longer have fuel cars? What about the oil industry? Are there really going to be flying cars in the 22nd century? Well, read on to find out!

  1. The oil & gas industries and fuel cars. Another “Kodak moment”?

Of course, with the rising concerns about the environment and the depletion of natural resources, significant effort is being put in finding renewable alternatives for fuel. But, this doesn’t imply that the oil industries are going to become dodos or dinosaurs anytime soon.

With the many theories put out there by experts, various factors being “potential reasons” for oil industries to vanish are still debatable. For example, replacement by biofuels. The greenhouse gases that are emitted throughout the various stages in the production and use of biofuels, in producing the fertilizers, pesticides, and fuel used in farming, during chemical processing, transport and distribution, up to final use. This process involves a significant amount of fossil energy itself along the entire supply chain that often makes biofuels less environment-friendly than petroleum-based fuels. Oil and gas will still have a market, though a reduced one, in supplying feedstock to the petrochemical industry for making plastics, clothes and in air and sea transportation, where renewables or batteries are unlikely to be competitive.

But, talking about the automotive industries, with power increasingly coming from a large number of intermittent sources and from energy stored in batteries, and with consumers increasingly generating their own from solar panels, the utility model is fast-changing. The process of passing power from large generators to consumers will not support the complex power systems of the future without utilities taking a more coordinating role.

For these reasons, it is possible and increasingly likely that beyond the middle of this century fossil fuels will play little or no role in producing electric power in advanced economies. And if electric vehicles gain ground, as many in the auto industry expect, the future will be largely free of fossil fuels.

Written by Skanda Upadhyaya on 08 Dec 2018