Gas stations across the United States are closing their doors at an alarming rate. There are a few things causing this trend, including the volatility of gas prices and the growing popularity of electric vehicles. The big names in the industry, like Shell and Exxon Mobil, aren’t safe either. Here are give gas station chains you might see slowly disappearing from the roadside soon.
1. Shell
Shell is easily one of the most recognizable gas station chains out there. The company recently revealed plans to close 1,000 locations in 2024 and 2025. Rather than keep these locations open, Shell is shifting its focus to EV charging stations. Honestly, it’s pretty smart. Many carmakers are also shifting their focus to sustainable vehicles, with many of the EV and hybrid models gaining more traction.
Despite Shell’s decision to close 1,000 gas stations in the U.S., the company is far from going bankrupt. The only major thing that will change is the need to import has from other sources. More customers are choosing to go green when it comes to their means of transportation. Shell is simply making the change with them. The goal for Shell is to have 200,000 EV charging stations across the country by 2030.
2. Chevron
There are a few changes happening with Chevron, another fuel giant. The company announced that it would be moving its headquarters from San Ramon, California to Houston, Texas. Chevron has also announced that it would close two of its biodiesel plants in Madison, Wisconsin, and Ralston, Iowa indefinitely.
These shifts are definitely a sign of the times. Chevron hasn’t made any moves to change its direction to focus on EV charging stations (yet), but it is certain that the brand will become less prevalent in California. The state is going green, so there is a higher demand for charging stations and a decreasing demand for gas stations. Ultimately, moving to Texas is a sensible move because the southern state isn’t focused on “going green.”
3. ExxonMobil
Like Chevron, ExxonMobil is making its way to Houston, Texas. The company is closing its Research and Engineering facility in Clinton Township, New Jersey. It has made the decision to relocate most of its employees to the Houston area and the phased relocation is expected to be complete by 2028.
That said, the company is still facing some significant challenges, including a 34% decline in earnings over the past year. You’ll notice that’s higher than the Oil and Gas industry average of 31.9%. While there aren’t any signs of the gas station chain closing its locations any time soon, there are some signs that it will need to adjust to the changing times to stay afloat.
4. SQRL Service Stations
On November 15, SQRL Service Stations won court approval to convert its Chapter 11 bankruptcy to a Chapter 7 liquidation. The gas chain’s demise was marked by several different things. First, the company laid off around 400 employees, which is never a great sign. Then other issues started popping up. Some stores had reduced hours and merchandise supply issues.
Now, SQRL Service Stations is being pressured to liquidate and pay off its $1.2 billion in debt. In the end, its downfall seems to be rooted in bad business.
5. Mountain Express Oil
One of the most epic downfalls in the gas business is that of Mountain Express Oil. In August of 2023, operations came to a full stop, and it joined the trend of gas station chains closing in the country. This led to 1,000 people losing their jobs and a number of communities with empty gas station hubs. Again, bad business practices are mostly what led to this gas station chain shutting its doors for good. Former employees of the gas company testify to bad leadership and corporate culture. In fact, many of them were due unpaid wages when the company shut things down.
A Trend Of Gas Station Chains Closing Across The USA
Gas station chains are being faced with some serious changes. Consumers’ mindsets are changing, the needs of drivers are shifting, and bad business practices are crushing some brands. The same gas giants that once held so much power are realizing that they have to change their ways to continue doing business. For some, like Shell and Chevron, it means relocating and shifting focus. For others, like Mountain Express Oil, it means cutting their losses and shutting down shop.
Are there any other gas stations that you think might be on their way out? Comment and let us know what you think.