Technology is rapidly changing everything, and electric vehicles will reduce oil consumption by a large margin. What we will be using in the electric era would be just grease and oil lubricants.
So what happens to oil companies when EVs (electric vehicles) take over the market?
The clean answer is nothing much. Because oil companies will tune their business model more towards power generation, away from gasoline, and enter the business of electrical generation themselves.
Oil companies have been in the electric generation business for years for their self consumption. So, why not get into the open market if they hold so much fuel?
Since electric vehicles have to receive electricity from somewhere; all the ICE (Internal Combustion Engine) vehicles are junked and EVs start to dominate the automobile industry. It will only increase the electricity demand. So these oil companies will transition their business for that facilities.
Firstly, they will replace the fuel stations with charging stations. So monetization of fuel stations will only get better after electric vehicle adoption. Since charging will take little time, they will focus more on the waiting time of consumers. For example, a coffee shop will do good business while the car is charging.
Secondly, there are many more products other than fuel that oil companies provide. Just moving to the EV era will not reduce the use of oil items. Lubricants like engine oil, transmission oil, grease, hydraulic oil, and functional fluids such as coolant, and brake fluid are still needed even after EV adoption.
EVs are not yet capable of commercial vehicles and large trucks, so they will still use oil.
In addition, diversification away from hydrocarbons will begin to happen. Major oil companies have already been doing this for decades. So far, however, the economics of the market demand has brought them back to the core business of oil and gas products.