For those in the United States, I hope you enjoyed some quality family time during the long Memorial Day Weekend.
I also hope to see you at the upcoming AAPG webinar tomorrow at 8am CT entitled “Iran War: Impact on the Middle East and the Oil and Gas Industry.” I will be joining Jim Krane from Rice University’s Baker Institute and Robin Mills of Qamar Energy for what promises to be an insightful discussion. You can register to attend here. If you can’t make it, register anyway, and the AAPG team will send you a free recording to watch on demand.
Let’s look into two pieces of energy news from the past week.
Shangyou Nie
Editor, Well Read
IEA Reports 2025 EV Sales Set Record in 100 Countries
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On 20 May, the Paris-based International Energy Agency issued its annual report entitled “Global EV Outlook.” The report stated that “electric car sales set new records in close to 100 countries last year.”
Global EV sales grew by 20 percent, exceeding 20 million, or 25 percent of all new cars sold worldwide. China supplied 60 percent of the EVs sold globally in 2025. Total EVs in 2026 are projected to be around 23 million and account for 30 percent of new car sales.
In Q1 2026, EV sales set new records in several markets, including Europe, Southeast Asia, and Latin America.
Europe saw the fastest growth, with EV sales representing 28 percent of new cars sold in 2025.
In China, EVs represented 55 percent of new cars sold, but the growth rate slowed from 2024.
In the United States, EV sales represented 10 percent of new cars sold in 2025.
In Southeast Asia, EV sales more than doubled to reach 20 percent of all new cars sold in 2025.
In Latin America, EV sales grew by 75 percent in 2025, led by Brazil and Mexico.
China's dominance:
China produced 75 percent of the world's 22 million EVs in 2025.
China exported 2.5 million EVs in 2025.
In countries outside of the United States and Europe, Chinese EVs represented 55 percent of sales in 2025.
China overtook the European Union as the largest car exporter in 2024.
China produced more than 80 percent of batteries for EVs in 2025.
Implications for the oil and gas industry:
Globally, road transport represents about half of oil demand today.
In 2025, it is estimated that EVs reduced oil consumption by 1.7 million barrels per day.
But challenges remain:
Growth for electric trucks is still much slower than that of passenger cars.
Electric trucks remain two to three times more expensive than diesel trucks.
The total cost of ownership for an EV truck will not reach cost parity with diesel trucks before 2030.
In the United States, EV sales in 2025 totaled 1.5 million—lower than in 2024—as a result of policy shifts.
In Q1 2026, total EV sales dropped to 3.9 million EVs globally, 8 percent lower than in Q1 2025, due to slower sales in China and the United States.
Affordability is still a barrier for many:
In Europe, about 25 percent of internal combustion engine cars were priced below $30,000, compared to 10 percent of EVs.
In the United States, 40 percent of internal combustion engine cars were priced below the median price ($40,000); Less than 20 percent of EVs were below this median in 2024 and 2025.
In India, EV car sales were 165,000 in 2025, representing just 4 percent of total cars sold that year, despite a 75 percent year-over-year growth.
Some 60 percent of EVs sold in India were produced by domestic carmakers Tata Motors and Mahindra Auto.
Looking ahead:
In 2026, total EV sales are expected to reach 23 million, representing 28 percent of total car sales.
Growth in EVs is increasingly driven by economics, rather than just climate change.
Adoption of EVs in emerging economies such as India will be critical to global oil demand.
Will the Iran conflict and oil supply disruptions encourage some countries/customers to switch to EVs, and thereby affect global oil demand?
Geopolitical tensions involving Iran are reshaping global energy strategy, regional alliances, and oil & gas markets in real time.
Join AAPG on 28 May for a webinar exploring the impact on Middle Eastern energy, global markets, OPEC dynamics, and the future of the region’s oil and gas industry.
Texas Added 1,800 Upstream Jobs in March, As the Industry Responds to Higher Prices
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Texas added 1,800 jobs in the upstream oil and gas industry in March, according to an analysis by the Texas Oil & Gas Association. This job growth reversed a declining trend in recent years.
Before the war in Iran, there were thousands of layoffs at majors and independents due to an extended period of weak oil prices. Some American independent producers had also been considering reducing their capital programs.
The latest:
According to Houston public radio, Texas added 1,800 more jobs in March than it did in February, with 200 in the greater Houston area.
Compared to March 2025, however, upstream employment in Texas is still down 7,100 jobs.
The analysis was based on employment data published by the Texas Workforce Commission.
What they are saying:
“The continued depletion of the storage of oil [in] both private and public sectors has motivated some companies to expand their production,” said Todd Staples, President of the Texas Oil & Gas Association.
“This data underscores the enduring strength and adaptability of Texas’ energy sector despite recent market fluctuations,” added Staples.
Big picture:
During the past seven years, upstream employment in Texas fluctuated between 157,000 and 240,000 jobs.
The lowest point was in September 2020, due to the COVID-19 pandemic.
Upstream employment increased to roughly 205,000 in the summer of 2022, but did not reach the pre-COVID high of 240,000 from 2019.
Upstream employment hovered around 200,000 from 2022 to 2024.
There had been a detectable downward trend since Q1 2025: The employment number dropped below 200,000 until March’s upswing.
Texas has, by far, the most upstream jobs in the United States.
Oklahoma, Louisiana, New Mexico, North Dakota, and Colorado are the other five states with leading upstream employment.
What to watch: Will the upswing continue as a number of independent producers, including Diamondback Energy, EOG Resources, and Continental Resources, recently decided to increase their crude production?
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