2022/3

The price of oil has been bouncing up and down due to market uncertainty; the current situation between Russia and Ukraine is one of the main catalysts, but market shenanigans in the OPEC block are also contributing to swings in BBL pricing. No doubt, OPEC leaders can smell the profit potential but it would be dumb to think that non-OPEC oil producing nations are not thinking the same lines. Petro-economies are sensitive to price swings. In the West, where labor rules are stiff and environmental rules are stringent, small increases in BBL prices may not be enough to motivate increasing the production of oil if the anticipated increases in profit will not offset the increased production costs.  It is a business, after all.

Add increases in wages (inflation-driven wage hikes) and inflation, as well as the costs associated with; ongoing environmental tests, mitigation of affected sites, community consultation, resistance to increased production by environmental groups, questions of jurisdiction and other factors that I may have missed and the resistance to increased production can be stiff.

Many of the auto manufacturers have committed to producing electric vehicles. This will dampen the use of gasoline in most of the developed nations but I think the use of gasoline in developing nations will increase due to lower fuel costs (you have to get rid of inventory and continue to produce oil and gasoline to avoid massive job loss), effectively shifting pollution from one area to another but possibly doing little to reduce the amount of overall pollution produced world-wide.

Then there’s Hydrogen; probably the best option, although under developed and not on the radar for most Governments or auto producers.

Do you think electric vehicles will really lead to a significant reduction in Global pollution or simply move it around?

Is Electric the best option?

Will reducing Oil and Gas sector jobs (in North America) lead to moderate or massive job losses and will those positions be absorbed into the Electric vehicles production sector?