One of world's largest petroleum companies releases surprising update on its finances: 'We can take the lead'

The gas industry in China is facing tough competition, but that's not a bad thing.

Sinopec Corp, one of the largest gas and oil companies in China, reported significant losses for its first quarter.

The company's "first-quarter profit fell by 27.6% versus a year earlier," per Reuters.

Losses are attributed to falling oil prices and declining sales, likely due to competition from electric vehicles.

Electric vehicles are becoming more popular, especially in China, where low EV prices and accessible government incentives help drivers make the switch to electric. China has over 20 million electric vehicles, and that number continues to rise — "one in three new car registrations in China was electric in 2023," according to the International Energy Agency.

Making your next car an EV could drastically reduce your carbon impact. Transportation "accounts for around one-fifth of global carbon dioxide (CO2) emissions," per Our World in Data.

Watch now: How bad is a gas stove for your home's indoor air quality?

Road travel — cars, buses, and trucks — make up 75% of those emissions, but they don't have to. Electric vehicles produce no tailpipe pollution, and even when accounting for production-related pollution, electric vehicles are the more sustainable option.

It's clear that EVs are the future, and companies are catching on. Holding onto a fading, dirty fuel market isn't just bad for the environment — it's bad for business.

Although Sinopec primarily sells petroleum products, it's attempting to adapt to a changing market by shifting its focus to green initiatives. Sinopec recently partnered with Pertamina, a geothermal energy company, to work towards green hydrogen.

"Sinopec is vigorously implementing a green and low-carbon development strategy," said Ma Yongsheng, chairman of Sinopec Corp, in a Sinopec press release. "We understand deeply that the green, low-carbon industry boasts tremendous potential in the next 30 years, and we can take the lead through technological innovation and building the ecosystem with our partners."