00:00You cannot make this stuff up. The CEO of one of Australia's biggest fuel companies has just
00:05admitted on national television that petrol might not have a future in this country.
00:12This is the CEO of one of Australia's biggest oil companies, fuel companies.
00:20And he says petrol doesn't have a future in this country. He's not an activist. He's not a
00:26politician. The boss of Ampol is who he is. And this is the company that owns one of only two
00:34oil
00:34refineries left in Australia. He's saying refining and selling petrol is becoming less and less
00:41profitable and will one day be phased out entirely. Let me tell you why this is one of the most
00:48significant admissions we've ever heard from the fossil fuel industry. I'm going to guess this guy's
00:54getting an absolute spanking from the rest of his peers. But anyway, good on him for being honest.
01:01Matt Halliday, Ampol's CEO, was speaking to Alan Kohler on, or I don't know how you pronounce this
01:07guy's name. I don't watch national television. Anyway, he's talking on the ABC and he didn't
01:12dance around this question. He said profits from petrol sales are declining as EB sales in Australia
01:18hit record levels. Interesting, isn't it? The numbers backing him up are extraordinary. In April,
01:25EVs hit 16.4% of the market. In May, 20%. In June, 24%. Nearly one in four new vehicles
01:34sold in
01:34Australia was fully electric last month. The Tesla Model Y was easily the best-selling car in the
01:40country in May and then again in June. Now, here's the other side of that coin. And this is the
01:46part
01:47that legacy media buries intentionally. Petrol vehicle sales over those same three months fell 30%,
01:5430% and 30%. Petrol cars are now down to 24% market share. Think about that. Petrol vehicles and
02:03electric vehicles are within about 1.5% of each other in Australia. Right when the price of EVs is
02:14going down, the range of EVs is going up, the charging speed of EVs is going up, EVs are getting
02:19better every single year. On the Electric Viking website, I'll put a link in the description below,
02:25we have more articles about electric cars and battery technology than any other website that I'm aware of
02:31in the world. So check that out. Link is in the description. And there you'll find our videos
02:38and analysis and articles about everything going on in the EV world. Five years ago, if you'd said
02:44this out loud, people would have laughed at you. I mean, maybe not you guys watching the channel,
02:49but you know, the regular Gumby's on the street, they would have. How do they explain exactly why this
02:55kills the petrol business? Australia has only two operational refineries left. Ampol's Litton
03:02refinery in Brisbane and Viva Energy's plant in Geelong. And together they produce around 20% of the
03:09country's fuel. His problem is that a refinery can't just stop making petrol. So as demand collapses,
03:17which he's predicting will happen, he has to figure out how to produce more diesel and jet fuel
03:22and less petrol. And in his words, there's a point at which refining petrol becomes more challenging
03:29because the moment you have to put surplus petrol on a ship and send it somewhere else, it becomes
03:35very, very, very expensive. That's the death spiral. Falling demand, stranded product, shrinking
03:42margins. But here's the bigger problem that he's not mentioning. Diesel demand is going to fall as
03:48well. I mean, why would it not? Electric trucks now with 700, 800 kilometers of range hitting the
03:55market that are so much better than diesel, that last so much longer. Here's what I found most
04:00interesting. Kohler put it to him directly. If all your petrol customers switched to EVs tomorrow,
04:07you'd make less money, right? And Halliday didn't deny the margins are lower, but he said something the
04:14oil industry has spent 20 years pretending is not true. EV charging can be a profitable business.
04:23He basically said, we're going to pivot, and we are now, to EV charging. The business model works.
04:30Margins are lower, yes, at least right now, but customers charge more frequently. And Ampol already
04:38has more than 350 charging bays across its service stations and shopping centers. And Halliday says the
04:43company can make, in his words, good returns, or he said reasonable returns, leveraging the forecourt
04:50footprint that they already own and building on top of it. They're tracking postcodes. They're tracking
04:56where EVs are arriving, tracking fleet customer data, and building the network where they think the cars
05:02actually are. So the playbook here is pretty obvious. Ampol isn't fighting the transition. It's
05:11positioning for it, while the EV fleet is still only two to three percent of the total light passenger
05:17fleet on the road. They know what's coming, though, because they can see it in their own fuel sales
05:22data before anyone else can. Isn't that interesting? This is not based on feelings. It's just based on
05:27logic. Now, to be fair, Halliday says diesel and jet fuel are a different story, although I disagree
05:32with him on that. I mean, jet fuel may be, but not diesel. There's no economic alternative yet,
05:37he claims, and Australia will need that fuel security for a long time. That's a reasonable
05:42point on jet fuel. But on diesel, I don't agree. And on petrol, well, petrol is a product that EVs
05:48replace directly and very quickly. And the man whose company refines it just told the country
05:56and the oil industry that it's going to be phased out. As if they didn't already know this, but I
06:02mean,
06:02obviously, millions of people in Australia and America don't know this and don't believe this to
06:07be the case. They think it's never going to happen. They think EVs are a fad still. When the fuel
06:13companies themselves start planning for the end of petrol, guys, I'd say it's safe to say the debate is
06:20over. This is not ideology. It's not feelings. It's just arithmetic. And Paul's CEO just did the
06:28mass on national TV. Share this with a hater. Share this with one of your friends who's just
06:34losing their mind about EVs, hates EVs, hates any kind of change, probably uses an old Nokia 3310 mobile
06:42phone. You know, share this with one of your mates who just is just freaking out about this EV transition.
06:50It'll be fantastic. You'll get a nice laugh out of it anyway. Thanks for watching. Bye-bye.
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