Despite much of the mass media not acknowledging the disruptive nature of electric vehicle and battery technologies, they do pose a "resoundingly negative" threat to the oil giants, according to analysts at Fitch Ratings.
The credit analyst firm argues in a new report that the industry is facing a much more extensive threat from the growth of electric vehicle sales than is generally acknowledged, and that industry players should gear up for the "radical change" that's now in store.
The report is focused more generally on the impact of battery technologies on established industries, such as the oil industry, rather than just electric vehicles (EVs) themselves, but the potential that EVs will result in market disruption makes the technology a major part of the report.
The report does note, though, that EV adoption could prove to be a long, slow process, depending on various factors.
The report notes that battery technologies could also have a pronounced effect on the electric utility industry — with stationary energy storage systems working to make wind and solar energy technologies more economically viable at a faster rate than would otherwise be possible.