New Trump mileage standards to gut Obama climate effort

[modrepub]

15. Trying to Pump Up Oil Demand

The oil companies are in deep doo-doo now that the oil bench price has cratered after the OPEC+ collapse. Demand declines from automobiles is due to some extent from improved auto millage. This is about who controls the supply/demand curves; the big oil producers or the consumer. Little do they know how electric vehicles fit into the future. No one can stop that trend (or really predict it for that matter).

The problem we have as as we switch to electric cars is that oil demand won't keep up with supply development. Prices will go down and those who've invested heavily in oil production will be in trouble as oil companies suffer through declining revenue and stranded production/development costs. Look for more oil/gas bailouts from the government (like eliminating mpg requirements and buying more oil to put in the strategic reserve).

Creative destruction in action.