Quote:
Originally Posted by Blackbird45
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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Let's examine those concepts a bit further:
First of all, does anyone think it is likely that big oil would sacrifice profits today for fear of declining profit in the distant future????? I doubt it.
Second---EVs. Where do people think the electricity comes from???? Latest data for our sources of electricity:
Coal---------------33.2%
Natural gas----32.7%
Nuclear----------19.5%
Hydro---------------6.1%
Wind----------------4.7%
Solar----------------0.6%
This does not include heating and cooling homes from fossil fuels and industrial applications, so you could replace every internal combustion engine with EV and not make a dent in the carbon footprint, not that it matters since global warming is a myth anyway.
Third------"alternative fuel vehicle"---which, besides EV which is powered as listed above, is just what??? I haven't seen a nuclear reactor on a car since the Delorean in "back to the future". 40,000 pound windmill on top of a 3,000 pound car? Mobile waterfall????? 500 sq. ft. of solar panels on a mini cooper???
Fourth, to respond to some other posts, my understanding is that there are 2 parts to drilling on federal land---first, permission to lease the land and second a permit to actually drill on it. The government is more than happy to collect the rent for leasing the land, but this administration has issue exactly ZERO permits to actually drill on it. Must be Putin's fault. Also, there has not been a new refinery built in the US since 1974. Who thinks that is due to "greedy oil companies" and who thinks that is due to ridiculously overburdening environmental regulations? Hint: oil companies sell refined products.