All new passenger cars will be electric by 2040

until ExxonMobil He believes that electric cars are the future.

The oil giant predicts that by 2040, every new passenger car sold in the world will be electric, CEO Darren Woods told CNBC David Faber in an interview. In 2021, only 9% of all passenger car sales were electric cars, including plug-in hybrids. Market research firm Canalys. This number is 109% more than in 2020, according to Canalys.

In light of its determination, Woods said ExxonMobil is assessing how the decline in gasoline sales could affect its business. Exxon Mobil is one of the largest publicly traded global gas companies and a leader in the industry. Her website prides itself on being the largest “Refining and Marketing of Petroleum Products,” As well as a chemical company.

Woods, who has spent part of his career on the chemical side of the company’s operations, says chemicals will be key to maintaining the company’s profits during the clean energy transition. Plastics produced by Exxon Mobil can be used to manufacture electric vehicles.

ExxonMobil calculations predicted that oil demand in 2040 would be equivalent to what the world needed in 2013 or 2014. Woods told CNBC that the company was still profitable at the time.

Woods seemed unfazed by the prediction, saying, “Change is not going to make or break this business or this industry quite frankly.”

Watch the video above to see David Faber’s full interview with Exxon Mobil CEO Darren Woods at Corpus Christi. This interview was conducted as part of CNBC’s unprecedented access to Exxon Mobil’s energy transition plans, documented in our first documentary: “ExxonMobil at the Crossroads.”