Gas stations have been a staple of American life for over a century, but with the rise of electric vehicles, many wonder if gas stations will eventually become a thing of the past. In the opening paragraphs, we’ll provide quick answers to some key questions about the future of gas stations.
Will gas engines disappear completely?
It’s unlikely that gas engines will disappear completely in the foreseeable future. While sales of electric vehicles are growing rapidly, gas-powered vehicles still dominate the market. In 2020, electric vehicles accounted for only 2% of new car sales in the U.S. Even if sales of electric cars reach 50% by 2030, as some predict, that would still leave half the market for gas-powered cars. Additionally, gas engines power trucks, boats, generators, lawn equipment and more. While alternatives exist in some categories, gas engines won’t disappear from these applications overnight.
Do electric vehicles not need maintenance like gas cars?
It’s a common misperception that electric vehicles don’t require maintenance like gas-powered cars do. In fact, EVs still need tires rotated, brakes serviced, batteries checked, and periodic inspections. The main difference is that EVs have fewer fluids to change and have far fewer moving parts in their motors compared to gas engines. This reduces but does not eliminate the need for maintenance. Most experts recommend EV owners have their vehicles serviced twice a year.
When will most car sales be electric?
Forecasts vary on when electric vehicles will surpass gas-powered cars in total sales. According to BloombergNEF’s Electric Vehicle Outlook 2022, EVs accounted for 8% of global passenger car sales in 2021. BNEF predicts that number will rise to 58% in 2030 and 87% in 2040. So if these predictions hold, electric vehicles would outsell gas cars globally sometime in the early 2030s.
How long until gas engines are phased out?
Major automakers have announced plans to phase out gas engines between 2030 and 2040. For example, Volvo plans to sell only electric cars by 2030. GM and Volkswagen are targeting 2035. Others have made vague commitments to “electrify” their lineups without naming specific end dates for gas engines. Realistically, meeting these phase-out goals will depend on customer demand and regulations. As long as consumers still want gas-powered cars and they remain legal to produce, automakers will likely sell them even if EVs gain market share.
Will lack of demand make gas hard to find?
As electric vehicles take more of the automotive market share, demand for gasoline will decline. However, experts predict this will be a gradual process taking decades. For example, U.S. gasoline consumption peaked in 2007 and has dropped 10% since then. Even if gasoline demand dropped 50% by 2050, the country would still need billions of gallons per year. Gas won’t disappear from station pumps overnight. Even when EVs hit 70-80% of car sales, affordable gasoline will likely remain accessible for the remaining gas vehicle fleet.
Conclusion
Based on current projections, gas-powered cars will coexist alongside electric vehicles for decades to come. While gas engines will eventually phase out, likely by mid-century, this will be a gradual transition. Gas station owners face some uncertainty around when and how quickly demand may drop off. But with billions of gallons of annual gasoline demand remaining even in aggressive EV adoption scenarios, gas will remain accessible for the foreseeable future.
When were gas stations first established?
The first gas stations were established in the early 1900s, shortly after gasoline-powered automobiles became publicly available. According to the National Association of Convenience Stores, the first recorded gas station in the United States opened in 1905 in St. Louis, Missouri. This station sold gasoline in cans, not pumped from a hose like modern gas stations. In 1907, the first drive-in “filling station” opened in Pittsburgh, Pennsylvania. Customers could now fill up their cars right at the pump. The number of stations grew rapidly over the next few decades as car ownership expanded across America. By 1920, there were about 15,000 gas stations nationwide. The number peaked around 200,000 stations in the early 1960s and declined to around 150,000 today.
What percentage of stations have convenience stores?
Today, around 80% of gas stations in the U.S. have convenience stores on the premises. Retailers realized early on that they could drive additional revenue by selling snacks, drinks and other items while customers fueled up. Major chains like 7-Eleven pioneered the gas station convenience store model in the 1920s. Offering convenience items has become integral to gas stations’ business models. Convenience store sales now account for around 33% of total gas station industry revenues.
How many gas stations exist in the U.S. today?
According to data from the National Association of Convenience Stores (NACS), there are approximately 150,000 gas stations operating in the United States as of 2022. Here is a breakdown of the number of gas stations in each state:
| State | # of gas stations |
| Alabama | 3,977 |
| Alaska | 550 |
| Arizona | 3,933 |
| Arkansas | 2,939 |
| California | 11,665 |
| Colorado | 2,647 |
| Connecticut | 1,274 |
| Delaware | 576 |
| Florida | 9,170 |
| Georgia | 6,162 |
| Hawaii | 518 |
| Idaho | 1,112 |
| Illinois | 5,342 |
| Indiana | 4,046 |
| Iowa | 2,169 |
| Kansas | 2,157 |
| Kentucky | 3,454 |
| Louisiana | 3,164 |
| Maine | 1,024 |
| Maryland | 2,205 |
| Massachusetts | 2,472 |
| Michigan | 4,627 |
| Minnesota | 3,318 |
| Mississippi | 2,063 |
| Missouri | 3,650 |
| Montana | 951 |
| Nebraska | 1,452 |
| Nevada | 1,349 |
| New Hampshire | 735 |
| New Jersey | 2,034 |
| New Mexico | 1,119 |
| New York | 5,342 |
| North Carolina | 5,068 |
| North Dakota | 719 |
| Ohio | 5,905 |
| Oklahoma | 3,751 |
| Oregon | 1,799 |
| Pennsylvania | 5,613 |
| Rhode Island | 422 |
| South Carolina | 2,942 |
| South Dakota | 845 |
| Tennessee | 4,011 |
| Texas | 13,230 |
| Utah | 1,269 |
| Vermont | 392 |
| Virginia | 3,848 |
| Washington | 3,175 |
| West Virginia | 1,222 |
| Wisconsin | 3,370 |
| Wyoming | 482 |
How have gas stations evolved over the decades?
Gas stations have gone through major evolutions since their early days of cans and pumps:
1920s – Gas station stores emerge selling snacks, maps, tire repairs
1930s – First appearance of pump canopies, restrooms, garage bays
1940s – Self serve pumps introduced during World War II to conserve resources
1950s – Major brands like Shell and Exxon establish distinct architectural styles
1960s – Mini-marts and more food items become common as customer amenities expand
1970s – Self-service replaces full service as prevailing model to reduce costs
1980s – Convenience stores intensify focus on ready-to-eat foods like sandwiches
1990s – Stations downsize, offering fewer repairs, more snack and drink options
2000s – Premium cafe-style coffee, wi-fi and improved aesthetics target commuters
2010s – Fresh food, electric charging stations, and mobile apps tailor to millennials
How do gas stations make money today?
Here’s a breakdown of where gas station revenues typically come from today:
Gasoline sales – Accounts for approximately 70% of total revenues
Convenience store sales – Around 33% of revenues from snacks, drinks, tobacco, etc.
Service bays – Repair, tire changes and other services, 5-10% of revenues
Car washes – Around 2-3% of gas station revenues
So while gasoline remains the primary profit driver, convenience stores and ancillary services have become increasingly important for gas stations’ bottom lines. This diversification could help them adapt if gasoline demand eventually declines.
Gas station industry trends
Both gas stations and the overall convenience store industry are undergoing some major shifts. Here are some key trends playing out right now:
- Increasing consolidation – Major chains and corporate retailers account for a growing share of stations, squeezing out independently owned sites.
- Improving food offers – From staples like pizza to specialty offerings like poke bowls, foodservice is expanding.
- Electric vehicle charging – EV charging stations are becoming commonplace amenities, especially in certain regions.
- Green energy transitions – Some sellers are installing solar panels, switching to renewable energy to power their stores.
- Cashier-less checkout – A few stores are testing cashier-less systems, allowing customers to pay through an app.
- Alternative fuels – A small number of stations offer compressed natural gas, hydrogen or biofuels in addition to gasoline.
Major industry players
A few massive chains dominate the U.S. gas station landscape:
- 7-Eleven – Over 9,600 stores selling gasoline, most with convenience stores on site
- Speedway – Around 3,800 gas stations nationwide, owned by Marathon Petroleum
- Shell – Approximately 14,000 Shell branded stations in the U.S., both company-owned and franchises
- Exxon – Roughly 11,000 Exxon and Mobil branded gas stations nationally
- BP – Around 7,300 BP branded stations in the U.S., mix of company-owned and dealer sites
- Circle K – Operates over 4,000 convenience store and gas station sites nationally
Independent station owners still account for a slim majority – around 55% – of the national market. But major oil companies and convenience chains are quickly consolidating control through mergers, re-branding independent sites and opening new corporate-owned locations.
How might gas stations adapt to an electric vehicle future?
Gas station owners face an uncertain future with the growth of electric vehicles. Here are some ways they may adapt their business models:
Expand convenience store offerings
With consumables making up a growing portion of revenues, stores could double down on foodservice, selective merchandise and other amenities to drive traffic.
Emphasize proprietary brands
Stores could shift focus to promoting their own snack, drink and prepared food brands to build customer loyalty beyond fuel.
Install EV charging stations
As a top demand driver, adding DC fast charging stations and promoting charging amenities could attract EV drivers.
Repurpose garage bays
With fewer gas vehicles needing repairs, bays could be converted to expanded convenience retail space.
Add alternative fuels
Some locations may install pumps for other fuels including hydrogen, renewable diesel or biofuels.
Diversify sites
Operators may redevelop properties to support other uses like quick-serve restaurants or warehousing space.
Sell sites
Valuable corner locations could also be sold off and redeveloped for higher and better uses as demand shifts.
Conclusion
Gasoline engines still dominate America’s roads today, and most industry experts expect this to continue through at least mid-century. While the long-term outlook for gas stations faces challenges with the rise of EVs, the vast existing fleet of gas vehicles will require fuel and maintenance for decades to come. Gas station owners have already shown their ability to adapt over the past century as cars and customer needs evolved. By again diversifying their offerings and sources of revenue, gas stations in some form are likely to remain fixtures of our transportation landscape even in a more electric future.