The oil industry is facing the same challenges as the automotive industry: where is the direction of technology research and development, and where are the needs of customers?
When it comes to the future of the oil industry and gas stations, Bearing Point experts sometimes make comparisons in the following situations: Experts from these technical consultancies argue that while global temperatures are slowly rising, people don't seem to realize that bottlenecks in the oil industry are looming. Nina London and Jens Raschke analyze the professional newspaper Europlate: "At the moment the industry feels like there is not enough pressure on the market to push forward some of the necessary initiatives. ”
It's not just the automotive industry that faces the challenges of disruption and multiple transformations in the areas of alternative fuel drive, digitalization and autonomous driving, the oil industry is," according to Bearing Point, "in a fundamental transformation plan for the industry." Related keywords include corporate decarbonization, renewable energy and changes in demand caused by electric vehicles.
The good news from the oil industry is that, according to consultancies, the profit margins it has earned in the past mean that it has enough economic potential to invest in new technologies and business models, so it can maintain its advantage in the face of new competitors and find opportunities to enter the service market. According to expert estimates, "the ability to compete with these automakers has not yet emerged".
All-round gas station
One of the strengths of the gas station industry is having a well-developed infrastructure. The 14,100-seat petrol stations not only supply petrol and diesel to motorists' vehicles, but also create considerable value for the surrounding car wash equipment and shops. Gas stations are the largest sales channel for cigarettes in Germany, and for many people, it is only natural to buy some drinks and food while refueling. About 6 million people shop at least once a week at "gas stations" rather than supermarkets.
In a joint study with the Transportation Institute of the German Aerospace Center (DLR), market leader Aral presented the concept of the gas station in 2040: adapting to customer requirements in large cities, villages or along highways. The researchers hypothesized that by 2040 Germany's population would decrease by 5 million, and the number of cars would also decline, at around 43 million, but the number of kilometers traveled would increase significantly, especially in rural areas, where the total mileage of passenger cars compared to 2010 would be 700 billion kilometers. In the case of commercial vehicles, the mileage will even more than double.
In addition to its futuristic features, such as creating a taxi parking lot in the air, Aral's blueprint also contains something we already know, such as expanding a gas station into a shopping mall. In addition, these gas stations will also become business hubs for mobility service providers, such as car-sharing service providers or autonomous vehicle centers. In particular, these stations should be suitable for cars that use different types of energy, including fuel as well as synthetic fuel (E-Fuel) and hydrogen, and can also provide charging piles for fast charging of electric vehicles. In addition, the gas station can also provide battery replacement service.
At the 2019 Geneva Motor Show, the Swiss association Avenergy Suisse presented a blueprint for the future development of the gas station. Marco Brunori's development concept showed a circular gas station with strong adaptability. Different types of energy zones can be adjusted according to (long-term) needs. In addition, the multi-storey mobile hotspot consists of service areas such as shops, cafes or fitness centers, while the green inner courtyard can be used as a relaxation area.
The Center for Solar and Hydrogen Energy (ZSW) in Baden-Württemberg is testing what this future gas station can look like at the technical level through model experiments. The first components of the multi-energy gas station test equipment will be built in Hyde (Dietmarshin County).
The renewable electricity generated by wind turbines can charge the batteries of electric vehicles directly through the grid. Excess electrical energy is stored in a large stationary battery so that even several consecutive charges will not overwhelm the charging pile.
If the battery is fully charged, the system skips to the next stage: green electricity can be used directly to produce hydrogen so that it can be hydrogenated for fuel cell vehicles. If the hydrogen storage tank is also full, the system will produce methane. Carbon dioxide is added to hydrogen, which is converted into methane. Two gases react in a catalytic converter to produce methane. Natural gas vehicles can use this fuel. If the methane storage tank is full, the methane produced by green electricity will be fed into a backup natural gas pipeline.
While such refueling stations, which offer multiple energy sources, are still a vision for the future, industry bigwigs are currently pushing the envelope of existing networks, such as Aral boss Patrick Wendeler, who plans to install more than 500 high-performance fast charging piles with a maximum output of up to 350 kilowatts this year. In addition, Shell has also increased the number of diesel and gasoline dispensers. Jan Toschka, a gas station manager in the DACH area, predicted in an interview with ams that in the future, 1/5 of the vehicles at gas stations will be charged on public charging piles. In addition to investing millions of euros in charging stations, Shell will also expand its hydrogen supply, with around 40 Shell gas stations in Germany refueling fuel cell vehicles.
Industry bigwigs have their own unique vision. "When it comes to the gas stations of the future, the first thing that comes to mind is synthetic fuels," says Christian Amberger, owner of the Allguth gas station chain. The beverage shops affiliated with the gas station have been doing well. Amberg believes there is great sales potential here, especially in food stores, pharmacies or pharmacies. Competition is certainly unavoidable, "in general, we should not think too much at the moment, such as helipads or conference rooms, etc. ”
Stores that save sales
The COVID-19 crisis of 2020 is a testament to the importance of store operations to gas stations. In some cases, fuel sales fell by 80 percent, and after annual results stabilized at -9 percent, store sales continued, especially when places where beer pastimes after work or small convenience stores that usually open until late into the night had to be closed due to the COVID-19 pandemic.
The giants of the baked goods, fast food and beverage industries have a turnover of hundreds of millions of euros. However, there are also many discount stores in Germany: in Europe, people look more closely at the price of goods when buying groceries, while gas station goods are discounted on high-priced goods, but the final price is still not cheap. In addition, the lifting of the store closure law also means that supermarkets from Rewe, Aldi & Co. are open even at a later date.
This is different from Switzerland, where grocery stores in most cantons close at 8 p.m. at the latest, sometimes even earlier. That's why there are really small supermarkets at the gas stations of the Swiss Confederation, Migrolino and Coop Pronto, selling a wide range of fruits and vegetables. Selling this fresh food is not only a challenge, but also a cost issue: "Because the more fresh product you want to offer, the more things you have to throw away at the end of the day." It may be more expensive than running an upscale gas station," says Jan Toshka.
You don't have to go to the cashier to check out
Digitalization and payment via smartphones are also on the agenda of gas station operators. The Bertha app developed by Mercedes-Benz is a pioneer in this regard. Any user who installs the app on their smartphone and deposits enough money on their credit card can refuel at more than 1,600 Shell and around 900 other brands of gas stations, saving time on payments at the cashier and waiting in line.
Through Fuel & Go, Aral now relies on its own payment service to partner with Payback. After a pilot of 400 gas stations nationwide, the service will be rolled out to 2,000 gas stations.
However, only those who have a Payback account can use this payment service. Before you can refuel with Fuel & Go, you have to open the app and select The Fuel Dispenser. After refueling, payment can be made through the app. Payback points can also be collected, but the data must also be forwarded.
In the coming years, drivers can expect more improvements at gas stations.