Are Teslas and other electric vehicles perfect for the environment?
The answer is “no”, since nothing can be perfect. Electric vehicles are still a source of GHG emissions as a result of the manufacturing and raw material extraction processes. Further, and more importantly, lifetime emissions for electric vehicles also depend on the sources of fuel used to power the local grid.
So Is Driving a Tesla Better for the Environment?
Today’s infographic, which looks at the well-to-wheels impact of electric and gas vehicles, was created in association with Delbrook Capital, a financial services company that has launched the CO2 Master Solutions Fund.
Together we explore the latest data on the lifetime emissions of gasoline and electric vehicles, and how they compare depending on the state you live in:
Is driving a Tesla better for the environment than using a comparably sized gas-powered vehicle? In the majority of places, the answer is “yes”.
However, the true environmental impact depends greatly on the specific power sources that the local grid uses to generate electricity.
The Power Mix
According to a study done by the Union of Concerned Scientists, the average new gasoline vehicle generates the equivalent of 29 MPG of emissions over its lifetime. The study found that the average electric vehicle has emission equivalents in a range between 35 MPG to 135 MPG depending on the local power grid of the state it is driven in.
Electric cars driven in the Pacific Northwest states, as an example, have the emissions of an equivalent 94 MPG gas-powered car. This is miles better than a new Honda Fit (36 MPG) or even hybrids such as the Prius (50 MPG) or Honda Accord hybrid (47 MPG). This is because 52% of all power in the region comes from hydro.
In Colorado, about 70% of all electricity is coal-fired. This means that the electric car has the equivalent emissions of a gas-powered Honda Fit with 35 MPG. In Florida, natural gas has replaced coal usage, and now accounts for two-thirds of all electricity generated. Powering an EV on Florida’s grid for an estimated 51 MPG equivalent is better than driving a hybrid such as a Prius (50 MPG) or a Honda Accord Hybrid (47 MPG).
The Future of Emissions
Today, the study by the Union of Concerned Scientists concludes that 66% of Americans definitely would generate less emissions by driving electric vehicles based on the compositions of their local power grids.
In the very near future, plugging in will be better in 100% of places in America. Here’s why:
- Battery technology will continue to get better. More efficiency means lighter and better cars.
- Coal is falling. It’s gone from 44% of all U.S. power generation in 2009 to 33% in 2015. It’s forecasted to fall to 22% by 2020.
- Many states also have committed to specific targets for green energy as a portion of their energy mix. More renewables for the grid means less emissions.
For investors, these changes will create many opportunities for investors.
As the electric car era is ushered in, some experts are predicting that entire power grids will need to be re-wired to accommodate. Automobile dealer networks will be profoundly affected.
Car part manufacturers will also have to adapt. How many pieces are in a typical gas-powered vehicle? According to energy expert Gianni Kovacevic there are about 100.
In an electric vehicle, which only needs about 20 components, many of these parts such as pistons and spark plugs will become antiquated.
Charted: The World’s Biggest Oil Producers
Just three countries—the U.S., Saudi Arabia and Russia—make up the lion’s share of global oil supply. Here are the biggest oil producers in 2022.
Charted: The World’s Biggest Oil Producers in 2022
In 2022 oil prices peaked at more than $100 per barrel, hitting an eight-year high, after a full year of turmoil in the energy markets in the wake of the Russian invasion of Ukraine.
Oil companies doubled their profits and the economies of the biggest oil producers in the world got a major boost.
But which countries are responsible for most of the world’s oil supply? Using data from the Statistical Review of World Energy by the Energy Institute, we’ve visualized and ranked the world’s biggest oil producers.
Ranked: Oil Production By Country, in 2022
The U.S. has been the world’s biggest oil producer since 2018 and continued its dominance in 2022 by producing close to 18 million barrels per day (B/D). This accounted for nearly one-fifth of the world’s oil supply.
Almost three-fourths of the country’s oil production is centered around five states: Texas, New Mexico, North Dakota, Alaska, and Colorado.
We rank the other major oil producers in the world below.
|YoY Change||Share of
|2||🇸🇦 Saudi Arabia||12,136||+10.8%||12.9%|
|36||🇸🇸 South Sudan||141||-7.6%||0.2%|
|51||Other Middle East||210||+1.2%||0.2%|
|54||Other Asia Pacific||177||-10.6%||0.2%|
|55||Other S. &|
Behind America’s considerable lead in oil production, Saudi Arabia (ranked 2nd) produced 12 million B/D, accounting for about 13% of global supply.
Russia came in third with 11 million B/D in 2022. Together, these top three oil producing behemoths, along with Canada (4th) and Iraq (5th), make up more than half of the entire world’s oil supply.
Meanwhile, the top 10 oil producers, including those ranked 6th to 10th—China, UAE, Iran, Brazil, and Kuwait—are responsible for more than 70% of the world’s oil production.
Notably, all top 10 oil giants increased their production between 2021–2022, and as a result, global output rose 4.2% year-on-year.
Major Oil Producing Regions in 2022
The Middle East accounts for one-third of global oil production and North America makes up almost another one-third of production. The Commonwealth of Independent States—an organization of post-Soviet Union countries—is another major regional producer of oil, with a 15% share of world production.
|YoY Change||Share of
|South & Central|
What’s starkly apparent in the data however is Europe’s declining share of oil production, now at 3% of the world’s supply. In the last 20 years the EU’s oil output has dropped by more than 50% due to a variety of factors, including stricter environmental regulations and a shift to natural gas.
Another lens to look at regional production is through OPEC members, which control about 35% of the world’s oil output and about 70% of the world’s oil reserves.
When taking into account the group of 10 oil exporting countries OPEC has relationships with, known as OPEC+, the share of oil production increases to more than half of the world’s supply.
Oil’s Big Balancing Act
Since it’s the very lifeblood of the modern economy, the countries that control significant amounts of oil production also reap immense political and economic benefits. Entire regions have been catapulted into prosperity and wars have been fought over the control of the resource.
At the same time, the ongoing effort to pivot to renewable energy is pushing many major oil exporters to diversify their economies. A notable example is Saudi Arabia, whose sovereign wealth fund has invested in companies like Uber and WeWork.
However, the world still needs oil, as it supplies nearly one-third of global energy demand.
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