MJP –
A large petrol station has announced that it will be eliminating 1,000 locations and redirecting its resources to offer electric vehicle charging stations.
As part of a massive shift to electric vehicle (EV) charging, Shell, the second-largest gas station chain in the US by site count, has revealed its intention to eliminate 1,000 gas pumps.
Shell is making this strategic step to better position itself to compete with new Level 3 charging companies.
In its 2024 Energy Transition Strategy, the business laid out its intentions, saying that 500 gas stations will be closed that year and another 500 in 2025.
Shell has changed its energy strategy, which is reflected in this move, which affects around 14,000 gas outlets in 49 states.
Shell has decided to license outlets to franchisees rather than own its nationwide network since 2007.
But now the energy giant is putting $2.3 billion into building projects for non-energy ventures, such as convenience stores, and has started repurchasing hundreds of locations, mostly in New Mexico and Texas.
In response to changing consumer tastes, Shell plans to electrify its company-owned stations as part of a larger effort to reduce carbon emissions and promote sustainable energy.
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Shell is well-positioned to compete in the expanding electric vehicle sector, according to executives.
Offering customers food and refreshments as they charge their vehicles is one of the competitive advantages highlighted in the company’s recent financial report.
With record sales of all-electric cars reported by Hyundai, Ford, Lucid, and Rivian in 2024, the electric vehicle market has witnessed substantial development. Shell currently manages around 4,000 EV charging connections in the US.
Nevertheless, other car companies such as Ford, GM, Volkswagen, and Volvo are reevaluating their all-electric strategies due to Tesla’s disappointing sales performance this year.
Shell informed the U.S. Sun that it will be dedicating itself to “paced growth in key markets,” with an emphasis on increasing its retail operations and charging infrastructure, to move towards a greener energy model.
