00:00You cannot make this stuff up.
00:01The CEO of one of Australia's biggest fuel companies
00:05has just admitted on national television
00:07that petrol might not have a future in this country.
00:12This is the CEO of one of Australia's biggest oil companies,
00:18fuel companies.
00:20And he says petrol doesn't have a future in this country.
00:24He's not an activist.
00:25He's not a politician.
00:26The boss of Ampol is who he is.
00:30And this is the company that owns
00:31one of only two oil refineries left in Australia.
00:38He's saying refining and selling petrol
00:40is becoming less and less profitable
00:42and will one day be phased out entirely.
00:46Let me tell you why this is one of the most significant admissions
00:49we've ever heard from the fossil fuel industry.
00:53I'm going to guess this guy's getting an absolute spanking
00:56from the rest of his peers.
00:58But anyway, good on him for being honest.
01:00Matt Halliday, Ampol's CEO, was speaking to Alan Kohler on,
01:05or I don't know how you pronounce this guy's name.
01:08I don't watch national television.
01:09Anyway, he's talking on the ABC,
01:11and he didn't dance around this question.
01:14He said profits from petrol sales are declining
01:16as EV sales in Australia hit record levels.
01:20Interesting, isn't it?
01:22The numbers backing him up are extraordinary.
01:24In April, EVs hit 16.4% of the market.
01:28In May, 20%.
01:30In June, 24%.
01:32Nearly one in four new vehicles sold in Australia
01:35was fully electric last month.
01:37The Tesla Model Y was easily the best-selling car in the country
01:41in May, and then again in June.
01:44Now, here's the other side of that coin,
01:46and this is the part that legacy media buries intentionally.
01:51Petrol vehicle sales over those same three months
01:53fell 30%, 30%, and 30%.
01:56Petrol cars are now down to 24% market share.
02:01Think about that.
02:02Petrol vehicles and electric vehicles
02:04are within about one and a half percentage points
02:07of each other in Australia.
02:11Right when the price of EVs is going down,
02:15the range of EVs is going up,
02:17the charging speed of EVs is going up,
02:19EVs are getting better every single year.
02:21On the Electric Viking website,
02:24I'll put a link in the description below,
02:25we have more articles about electric cars
02:28and battery technology
02:29than any other website that I'm aware of in the world.
02:32So, check that out.
02:34Link is in the description,
02:36and there you'll find our videos and analysis
02:39and articles about everything going on in the EV world.
02:42Five years ago, if you'd said this out loud,
02:46people would have laughed at you.
02:47I mean, maybe not you guys watching the channel,
02:49but, you know, the regular Gumby's on the street,
02:52they would have.
02:53How do they explain exactly why this kills the petrol business?
02:57Australia has only two operational refineries left,
03:01Ampol's Litton Refinery in Brisbane
03:03and Viva Energy's plant in Geelong.
03:06And together, they produce around 20% of the country's fuel.
03:10His problem is that a refinery can't just stop making petrol.
03:14So, as demand collapses,
03:17which he's predicting will happen,
03:18he has to figure out how to produce more diesel and jet fuel
03:22and less petrol.
03:24And in his words,
03:26there's a point at which refining petrol becomes more challenging
03:29because the moment you have to put surplus petrol on a ship
03:31and send it somewhere else,
03:33it becomes very, very, very expensive.
03:37That's the death spiral.
03:39Falling demand,
03:41stranded product,
03:42shrinking margins.
03:43But here's the bigger problem that he's not mentioning.
03:46Diesel demand is going to fall as well.
03:48I mean, why would it not?
03:50Electric trucks,
03:52now with 700,
03:53800 kilometers of range,
03:54hitting the market,
03:55that are so much better than diesel,
03:58that last so much longer.
03:59Here's what I found most interesting.
04:01Kohler put it to him directly.
04:03If all your petrol customers switched to EVs tomorrow,
04:07you'd make less money, right?
04:10And Halliday didn't deny the margins are lower,
04:13but he said something the oil industry has spent 20 years
04:16pretending is not true.
04:19EV charging can be a profitable business.
04:23He basically said,
04:25we're going to pivot,
04:25and we are now,
04:27to EV charging.
04:28The business model works.
04:30Margins are lower,
04:32yes,
04:32at least right now,
04:33but customers charge more frequently.
04:37And Ampol already has more than 350 charging bays
04:40across its service stations and shopping centers.
04:42And Halliday says the company can make,
04:44in his words,
04:45good returns,
04:46or he said reasonable returns,
04:48leveraging the forecourt footprint
04:50that they already own
04:52and building on top of it.
04:54They're tracking postcodes.
04:55They're tracking where EVs are arriving,
04:58tracking fleet customer data,
04:59and building the network
05:00where they think the cars actually are.
05:04So the playbook here is pretty obvious.
05:08Ampol isn't fighting the transition.
05:10It's positioning for it
05:12while the EV fleet is still only
05:14two to three percent
05:15of the total light passenger fleet on the road.
05:18They know what's coming, though,
05:19because they can see it
05:21in their own fuel sales data
05:23before anyone else can.
05:24Isn't that interesting?
05:25This is not based on feelings.
05:27It's just based on logic.
05:28Now, to be fair,
05:29Halliday says diesel and jet fuel
05:31are a different story,
05:32although I disagree with him on that.
05:33I mean, jet fuel maybe,
05:34but not diesel.
05:35There's no economic alternative yet,
05:37he claims,
05:38and Australia will need that fuel security
05:39for a long time.
05:41That's a reasonable point on jet fuel,
05:44but on diesel,
05:45I don't agree.
05:46And on petrol,
05:47well, petrol is a product
05:48that EVs replace directly
05:50and very quickly.
05:52And the man whose company refines it
05:54just told the country
05:56and the oil industry
05:58that it's going to be phased out,
06:00as if they didn't already know this,
06:02but, I mean,
06:02obviously millions of people
06:04in Australia and America
06:05don't know this
06:06and don't believe this to be the case.
06:07They think it's never going to happen.
06:09They think EVs are a fad still.
06:12When the fuel companies themselves
06:14start planning for the end of petrol,
06:17guys,
06:17I'd say it's safe to say
06:19the debate is over.
06:21This is not ideology,
06:23it's not feelings,
06:24it's just arithmetic.
06:26And Paul's CEO
06:27just did the mess
06:28on national TV.
06:30Share this with a hater.
06:32Share this with one of your friends
06:33who's just losing their mind
06:36about EVs.
06:37Hates EVs,
06:38hates any kind of change,
06:39probably uses an old Nokia 3310 mobile phone.
06:43You know,
06:44share this with one of your mates
06:45who just is just freaking out
06:48about this EV transition.
06:50It'll be fantastic.
06:53You'll get a nice laugh out of it anyway.
06:56Thanks for watching.
06:57Bye-bye.
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