Cratering motor fuel sales in Norway show the death spiral that can end oil
It’s common knowledge that Norway is the land of electric cars and that the country keeps breaking EV sales records with virtually no new fossil vehicle sales. But what’s really important is the effect those EVs are having on oil sales, which are in steep decline in the country as a result – and the same thing could happen elsewhere.
Norwegian statistics agency SSB released its latest numbers on motor fuel sales today, showing a whopping 9% decline in motor fuel sales year-over-year for the month of September.
This is a result of Norway’s world-leading EV sales, with over 90% of new vehicles in the country having some sort of plug and vanishingly few having no electrification at all. The country has exceeded its own high expectations, virtually ending fossil vehicle sales years ahead of schedule.
However, there are still fossil vehicles on the road from previous years that are continuing to pollute and use fossil fuels throughout their lifecycle. But as they age and are replaced almost solely with EVs, the vehicle fleet cycles out from fossil to electric. If it takes 10-15 years for the vehicle fleet to cycle out, then that means Norway would remove ~6-10% of fossil cars from the road every year, replace them with electric cars, and thus reduce motor fuel usage by a similar amount every year.
But this trend is nothing particularly new. While this big 9% drop is just a one-month snapshot, petrol/gasoline sales have been in decline for about two decades in the country, as diesel started to replace petrol in the mid-2000s. But diesel has also been in decline for the better part of a decade, as electricity has replaced it as a motor fuel.
To compare against other rapid declines, US coal usage has gone from a peak of 1,045 million tons in 2007 to 469 million tons in 2022, a decline of about 5% per year (and going from ~50% of the US electricity mix to ~20% now, and dropping). Many observers acknowledged, even near the beginning of this trend, that coal was a dead industry. Any subsequent attempts to expand it have been unserious political stunts that were doomed to fail from the start – everyone (with a brain) knows the industry is dead.
But in that context, Norway’s decline in motor fuel sales seems to be happening almost twice as fast on a percentage basis as the United States’ decline in coal use, at least according to today’s data point. And the long-term trend may accelerate as the country now has virtually no gas vehicle sales.
This is important because when we talk about electrifying the auto industry, the point is not just to get people into better cars with neat new technology. The point is to reduce oil consumption, such that carbon that belongs underground stays there – permanently.
This is vitally important because if we burned even a fraction of all the oil that is already discovered and owned by oil companies, the carbon released would cause catastrophic climate change. This was covered in Bill McKibben’s excellent 2012 article “Global Warming’s Terrifying New Math.”
The only way we can avoid this fate is through one of the more wonderful phrases in the English language: “stranded assets.” In this context, the phrase refers to oil reserves owned by oil companies which get written off of those companies’ books because they are uneconomical to extract and sell.
In short, oil companies need to lose money, and lots of them need to go bankrupt.
And while Norway is just one relatively small country, news like this shows how that could happen as EV sales (and better yet, even cleaner methods of transportation like e-bikes and public transit) grow rapidly worldwide.
Oil demand -> oil prices -> oil supply
There is an interplay between oil demand, oil prices, and oil supply that could lead to a death spiral for the oil industry.
Lately, oil prices have been quite high around the world, nearing the historic highs of the 2010s and late 70s. This spike has largely been driven by pandemic-related supply (and demand) disruptions, the Russian invasion of Ukraine, and, as always, the decisions of Saudi Arabia (in this case, their decision to cut supply to buoy oil prices).
But looking back to the last peak, we can see another interesting thing: a giant drop in oil prices in the mid-2010s, which was driven by a “supply glut.” This supply glut was at least partially related to increased usage of hybrid and electric cars, which led to a relatively small decrease in oil demand. However, that small decrease meant that more oil was being pumped than used, which led prices to drop by about two-thirds in a matter of months.
The effect of oil prices on consumer demand is that as oil prices go up, usage (often) goes down, and interest in electric cars goes up. This stands to reason, as people start thinking about more efficient vehicles when the cost of fueling their vehicle becomes too much.
But the effect on supply is less popularly examined. In this case, low oil prices can actually be environmentally advantageous because it means that oil companies are less incentivized to explore new methods of extraction and that more expensive methods (such as tar sands extraction, which is also much more environmentally costly) become uneconomical.
If it costs more to extract the oil than the oil is worth, then the project won’t get started. And if the project doesn’t get started, then the oil stays in the ground to begin with, right where it belongs.
So, in a way, low oil prices can actually be better for the environment than high oil prices. This means fewer projects get started, and more projects and companies go bankrupt due to high costs and low profits.
And this is the spiral that we want to see. As the primary driver of oil demand (vehicles, specifically consumer vehicles) disappears, oil prices can drop because of this supply-demand imbalance. Then, there will be less reason for companies to extract oil in the first place, leading to the stranded assets we spoke of before.
Some regions with low cost of extraction might even prefer it this way and work to ensure this happens. The Middle East can extract oil for cheaper than anywhere else, so it could be to their benefit to put high-cost extraction methods out of business. Norway itself is an oil country (primarily for export, at this point) and has middling oil-extraction costs, but it may benefit in the short term from a shakeout of higher-cost countries. But ideally, Norway’s extraction would soon become uneconomical – and hopefully, so will Saudi Arabia’s.
The one danger of this path is that if oil demand does drop low enough, low oil prices could jeopardize consumer decision-making to move to cleaner options. Oil is subsidized to the tune of trillions of dollars worldwide per year based on unpriced external costs that all of us are paying on the back end – usually in the form of higher hospital bills or other environmental costs.
This could be solved by finally properly pricing oil globally, as Norway already rightly does. Norway’s realistic pricing for carbon pollution has helped to ensure that the true price of oil is reflected in consumer pricing, making it more apparent to consumers that fossil vehicles are not an economical option for society or their pocketbooks.
In contrast, the artificially low gasoline costs in the US (yes, US gasoline prices are still artificially low, even at today’s high prices) work to buoy consumer oil demand. Removing the ~$650 billion in implicit subsidies received by the fossil fuel industry in the US alone would help ensure that fair market conditions could prevail, and consumers would have a clear choice about what the better and cleaner option is.
And if we finally let the market work freely, after more than a century of both direct and implicit oil subsidies that have coddled this lying, deadly industry, we could finally see it spiral into the oblivion it deserves.
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GM sold over 21,000 electric vehicles in the US last month, its best yet. Despite the surge in August sales, GM warned that with the “irrational discounts” on EVs set to end soon, the market is due for a shake-up.
GM sells record EVs in August as irrational discounts end
August was GM’s best month ever for EV sales. The company sold over 21,000 electric models under the Chevy, GMC, and Cadillac brands last month.
The higher demand comes as buyers rush to secure the $7,500 federal tax credit, which is set to expire at the end of September.
Driven by the hot-selling Chevy Equinox EV, Cadillac Lyriq, and GMC Sierra EV, GM remains the second-best seller of EVs behind Tesla.
GM expects to see strong demand again this month, but without the credit, it expects changes next quarter. GM said, “There’s no doubt we’ll see lower EV sales next quarter.” The company anticipates it will take several months for the market to correct, adding that “We will almost certainly see a smaller EV market for a while.”
Like several automakers in the US, GM will adjust production accordingly, promising not to overproduce. Despite slower sales, it remains confident that its EV market share will continue to grow.
Since affordable EVs and luxury models have been the strongest segments, GM believes it’s in a better position than most. It already has “America’s most affordable 315+ range EV,” the Chevy Equinox EV. The electric Equinox is one of the few EVs with a starting price under $35,000 in the US.
Soon, the new Chevy Bolt EV will debut, which is expected to be even more affordable, starting at around $30,000.
With a full line-up of electric SUVs, Cadillac is the leading luxury EV brand, but that doesn’t include Tesla. And then there’s the Chevy and GMC electric pickup with segment-leading range, features, and more.
GM said as it adjusts to the “new EV market realities,” its ICE vehicles will provide flexibility while driving profits. We will learn more on October 1 when GM reports full third-quarter sales results.
Although I wouldn’t call it “irrational,” GM is offering generous discounts on EVs with the deadline approaching. The Chevy Equinox EV is listed for lease starting at just $249 per month with a new $1,250 conquest bonus. Chevy is also offering the $7,500 credit on top of 0% APR financing until the end of September.
Thinking about trying one of GM’s EVs for yourself? You can use the links below to find Chevy, Cadillac, and GMC models in your area.
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Global solar installations are breaking records again in 2025. In H1 2025, the world added 380 gigawatts (GW) of new solar capacity – a staggering 64% jump compared to the same period in 2024, when 232 GW came online. China was responsible for installing a massive 256 GW of that solar capacity.
For context, it took until September last year to pass the 350 GW mark. This year, the milestone was achieved in June. That pace cements solar as the fastest-growing source of new electricity generation worldwide. In 2024, global solar output rose by 28% (+469 terawatt-hours) from 2023, more growth than any other energy source.
Nicolas Fulghum, senior energy analyst at independent energy think tank Ember, said, “These latest numbers on solar deployment in 2025 defy gravity, with annual solar installations continuing their sharp rise. In a world of volatile energy markets, solar offers domestically produced power that can be rolled out at record speed to meet growing demand, independent of global fossil fuel supply chains.”
China’s solar dominance
China is leading this surge by a wide margin. In the first half of 2025, the country installed more than twice as much solar capacity as the rest of the world combined, accounting for 67% of global additions. That’s up from 54% in the same period last year. Developers rushed to complete projects before new wind and solar compensation rules took effect in June, fueling the spike. While that may lead to a slowdown in the second half of the year, new clean power procurement requirements for industry and bullish forecasts from China’s solar PV association (CPIA) suggest that 2025 will still surpass 2024’s record high.
The rest of the world
Other countries are adding solar at a healthy clip, too. Together, they installed an estimated 124 GW in the first half of 2025, a 15% year-over-year increase. India came in second with 24 GW, up 49% from last year’s 16 GW. The US ranked third with 21 GW, a 4% gain year-over-year despite recent moves by the Trump administration to suppress clean power deployment. Germany and Brazil saw slight dips, while the rest of the world added 65 GW, a 22% rise over 2024.
Africa’s solar market is also stirring. The continent imported 60% more solar panels from China over the past year, though a lack of reliable installation data makes it a challenge to track the true pace of deployment.
With installations surging across major markets and China driving the charge, 2025 is on track to be another record-breaking year for solar power.
Read more: China-made panels drive Africa’s 15 GW solar import milestone
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Porsche just axed two of its most iconic models. The gas-powered 718 Cayman and Boxster sports cars have been discontinued, with their new EV successors set to debut next year. However, Porsche isn’t the only brand killing off a popular nameplate.
Sports cars are due for EV successors in 2026
As it prepares for the all-electric replacements, Porsche has stopped taking new orders for the 718 Cayman and Boxster. For now, you can still order the vehicles from stock.
We’ve known for years that an electric replacement was on the way for the 718 lineup. Porsche CEO Oliver Blume confirmed in 2022 that the electric 718 successor would follow the Taycan and Macan EVs.
Although the new Cayman and Boxster EVs were expected to launch by the end of this year, it was pushed back due to software and battery sourcing delays.
Porsche initially planned to build the EV versions alongside the current ICE models at its Zuffenhausen plant, but that will no longer be the case. Despite rumors that Porsche was planning to extend 718 production, “high-ranking Porsche sources” told Autocar that’s not the plan.
The luxury sports car maker has dialed back its EV plans recently, with ICE Macan and Cayenne models now due to be sold alongside the electric versions.
Meanwhile, Porsche isn’t the only sports car maker killing off models with new EV successors on the way. Audi confirmed with Autoblog that the A7 and S7 will be discontinued after the 2025 model year.
In a statement, Audi said, “There are no 2026 Model Year A7 or S7 being offered as production shifts to the new A6 TFSI coming later this year.” However, the RS7 will live on as a 2026MY. The ICE A7 will be rebranded as the A6 TFSI, while the EV version will retain the A6 E-tron name, featuring a similar sportback design to the outgoing model.
Porsche and Audi have leaned into a more flexible “multi-energy” strategy, blaming slowing EV sales and a changing market.
Just last week, Porsche announced it no longer plans to build EV batteries in-house. Instead, it will focus on research and development.
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