Could Ecommerce Demand Help Oil?
Nov 12 2020 Read 794 Times
The coronavirus pandemic may have sent oil prices plummeting though according to analysts, an upward trend in eCommerce could save the industry. Instead of booking flights, going to the theatre and dining at restaurants, people are spending their money online. As a result, eCommerce delivery services have experienced a surge in demand. This translates to a significant boost in demand for motor and aviation fuel.
Online orders surge in US
In the US, both freight traffic and profits have increased substantially since the coronavirus pandemic sparked lockdowns in March. The latest data from the US Federal Highway Administration suggests that in 2020 the average heavy duty truck is covering 5% more distance every month than the previous year. Demand is so high that national freight companies FedEx and UPS have been forced to set shipping limits in anticipation of the festive season. International delivery company DHL is preparing for a huge surge in demand, with representatives revealing peak shipment quantities are expected to be 50% higher than last year.
Electric vehicles threaten oil and gas demand
While the eCommerce boom has helped the oil and gas industry stay afloat, the advent of EVs remains a major threat. Amazon recently pledged to invest in 100,000 electric delivery vans by 2030 as part of its Climate Pledge commitment. The partnership with American automotive company Rivian could significantly reduce demand for oil and gas within the eCommerce sector and encourage other delivery giants to do the same.
"The vehicle we’ve developed with Amazon is not just electric. We prioritised safety and functionality to create a vehicle that’s optimised for package delivery," says Rivian CEO RJ Scaringe. “We thought through how drivers get in and out of the van, what the work space feels like and what the work flow is for delivering packages.”
"When we set out to create our first customised electric delivery vehicle with Rivian, we knew that it needed to far surpass any other delivery vehicle," adds Ross Rachey, Director of Amazon's Global Fleet and Products. "We wanted drivers to love using it and customers to feel excited when they saw it driving through their neighbourhood and pulling up to their home. We combined Rivian’s technology with our delivery logistics knowledge, and the result is what you see here-the future of last mile delivery.”
In the face of volatility, maximising efficiency is now a top priority for energy companies. Find out more in ‘Detailed How to Measure Chlorides in Crude Oil by ASTM D4929C & Water Extraction.
Do you like or dislike what you have read? Why not post a comment to tell others / the manufacturer and our Editor what you think. To leave comments please complete the form below. Providing the content is approved, your comment will be on screen in less than 24 hours. Leaving comments on product information and articles can assist with future editorial and article content. Post questions, thoughts or simply whether you like the content.
In This Issue Fuel For Thought - Signal Group announces new senior appointment - Network of organisations committed to workplace launched - Ayalytical Instruments acquires Lawler Manufactur...
View all digital editions
Jan 23 2021 Digital Event
Jan 26 2021 Virtual event
Feb 02 2021 Virtual event
Feb 08 2021 Virtual & live stream
Feb 15 2021 Online