There are many factors for the increase in gas prices. One is the realization of these companies that there are alternative fuels on the horizon. So, you can understand why they’re interest in drilling has dropped, investing in something with diminishing returns is not a wise move. What this has created is a self-feeding problem. Less drilling, less product in the market, less product high prices for that product.
This problem is evolutionary, while we go through this transition oil price will climb. But when more of the public switch to EVs or some type of alternative fuel the prices will drop. Supply and demand.
The three-month tax holiday is a nice gesture, but it’s going to take longer than 3 months to switch from oil to alternative fuel vehicles. People have to realize this issue is not confined to the U.S. There are charts on the internet showing that prices have increased almost everywhere, this is a global issue.
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