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Houston Matters

What Will Happen To Houston’s Oil Sector When More Drivers Shift Away From Gas?

A new report suggests the oil industry could lose its monopoly on the transportation market by 2040. What could that mean for Houston?

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Financial research firm IHS Markit released a report two weeks ago suggesting that by 2040 the oil industry will lose its monopoly on the transportation market as more people start using electric vehicles. The report also suggests fuel economy standards will cause demand to plateau, and car-sharing and ride-hailing will continue to allow people to use their own vehicles less, which will subsequently cause vehicle sales to drop.

So what does this mean for Houston, as a major petroleum industry hub? The Houston Chronicle suggested in an article that it could be the industry's "most pressing challenge yet."

To learn whether this prediction is true, we talk with industry watcher Loren Steffy and Steve McDowell from Infonation, Inc.