Electric Flight Takes Off: Oil Markets Should Take Note

The aviation industry may not be on the verge of switching to electric planes just yet, but electric flight is no longer in its infancy. The technology has made significant strides in recent years, with several companies developing and testing all-electric aircraft.

In July, Archer's Midnight aircraft flew from Salinas to Monterey and back, demonstrating the feasibility of electric flight for short distances. However, this achievement should not be taken as a sign that electric planes will soon replace traditional jet fuel-powered aircraft. The Electric Aircraft Is No Longer the Science Project - Oil Displacement Will Be Slow - Until It Isn't.

The first fully electric aircraft was type-certified by EASA in 2020, and since then, several other companies have developed their own electric propulsion systems. These include Safran's ENGINeUS 100, which has been certified for use on up to 19-seat aircraft, and Heart Aerospace's ES-30, a 30-seat plane with an all-electric range of over 200 kilometers.

However, the switch to electric aviation will not be immediate. The global aircraft fleet is old and needs renewal, but replacement is slow. IATA estimates that there are currently over 18,000 aircraft on order, and the average fleet age has reached a record 15.2 years.