The price of oil is down significantly. The reason is obvious enough. The supply outweighs the demand. With the U.S., Canada and others generating oil output, it is no wonder that the price of oil is down. But when this has happened in the past, the powers that be (Big Oil, OPEC) have simply reduced supply and artificially forced the price of oil to go up.
Now, here is the problem for Big Oil. With the price of oil so high which also translate into high gasoline cost, it makes sense to look for alternatives. The electric car is coming and there is no doubt to that. The use of electric powered engines is inevitable. And, it won't be for just vehicles. Big Oil knows this or at least can see the writing on the wall.
In an effort to slow this down and/or bring it to a halt, Big Oil has decided to let the price of oil remain at all time lows. It's been said that OPEC would be o.k. with $50- $60 dollar barrel of oil. Remember, the price use to be over $100 dollars. By making oil cheap and there by it's byproducts (gas), Big Oil is extending the life of it's product. It is attempting to make us more dependent as before on it's product. The question is will it work. With the majority of vehicles throughout the globe powered by gas, It will probably work. The infrastructure for electric vehicles is not here yet and if Big Oil has it's way, it won't be feasible. When the Model-T was first made, there were electric vehicles then also. One could say, Big Oil won the fight over what form of energy would be used to run vehicles then. The same situation exist today and Big Oil is employing the same tactics as then to win this 21st century fight. The question is will they win or will electric power be the winner this time around. Who knows, it may end up being a tie and both forms of energy co-exist. We'll have to wait and see.
No comments:
Post a Comment