Chevron’s CEO has warned that he isn’t sure how high gas prices could get as Donald Trump continues to try to bring an end to the two-month-long Iran war. Mike Wirth was interviewed on CBS’s Face the Nation on Sunday and said that the war had exposed the relative futility of some measures taken to avert price shocks for consumers while warning that gas prices were not done rising, at least for now. Gas prices are nationally averaged at $4.46 for a gallon of low-grade fuel. Wirth said it was “very hard to say” that gas prices had peaked, as some administration officials have hurriedly insisted over the past month. Now, negotiations over a ceasefire deal have collapsed and Iran’s grip over the Strait of Hormuz has so far proved impossible for the U.S. to shake loose.
We had oil crises in the 80s and gas over $4 in 2008. I don’t see this having any significant long-term impact. Existing efforts will continue, but most people will just go right back to their old habits.
The difference is that now there are viable alternatives. Countries around the world are stepping up their renewables and embracing EVs. Trump’s stupid war could very well end up being the catalyst for the rest of the world ditching oil.
In many countries EV sales are higher than ICE sales.
https://www.youtube.com/watch?v=TZRTntfabOA
Not the US though.
In the US the Trump Administration is just doubling on making sure America’s Future is the early XX century (in more ways than one, even).
The major long lasting effects was the introduction and adoption of Japanese autos because of their better gas mileage.
For close to 2 decades fuel economy was an important selling point. At the time there was no viable alternative to gasoline engines. Today there is so whole markets are likely to change-over to majority electric.
I’m pretty sure that electric vehicles didn’t really exist in a remotely viable form in 2008, because my Dad was a relatively early adopter with the Nissan Lead, and I remember it took an inordinate amount of effort to plan charging stops for a long distance journey.
A lot of people will just go back to their old habits, but for many others, this could be the thing that kicks them out of their inertial rut.
I know. I was there. How many land yachts do you see now? Because there were lots before that.
When oil gets this high it’s disruptive. People start buying less because everything is more expensive. Going to get it. All the products oil is used in …plastics, synthetic fabrics, cosmetics,etc. Shipping it. Everything. Whether we like it not this entire country’s economy is based on the price of oil.
So yes we will recover eventually. But it will be different.
The embargo in the 70s pushed towards smaller cars, energy conservation but mainly towards exploring in areas outside of the middle east.