Rising energy costs and inflation podcast?

7

Politicians have and always will fiddle with elements of free markets. It sometimes results in unintended (or purposeful)consequences.

But the prices we pay at the pump for gasoline are not driven by what one country’s politicians might do in terms of playing around with the energy market, the scale and dynamics of it are far too large for those puny efforts to have a significant impact.

Here’s why:

  1. The US consumes and produces 17% of the global energy market, we are net zero on total the world market.
  2. The Keystone Pipeline was intended to import Canadian tar sands oil into the US, we don’t need to import any oil.
  3. The largest oil exporters are the Saudis and Russia, when they hiccup it shakes up the whole global oil picture.
  4. Russia just threw up all over the oil picture, from a global oil market perspective, the Keystone Pipeline wasn’t even an eye-blink.
  5. The pandemic triggered an unprecedented decline in oil demand, recovering from it will cause market volitivity.
    Here are some information resources for you. They are better that political scuttlebutt.

https://www.eia.gov/finance/markets/crudeoil/supply-opec.php

https://www.spglobal.com/en/research-insights/featured/moving-mountains-covid-19-and-peak-oil-demand


Moving Mountains: COVID-19 and Peak Oil Demand - S&P Global
Highlights. COVID-19’s impact on the global economy and consumer behaviors has reduced long-term world oil demand by 2.5 million barrels per day, according to S&P Global Platts Analytics Future Energy Outlooks… However, some adjustments to the demand outlook were positive as weaker oil prices make electric vehicles less competitive, reduce the drive for efficiency, and stimulate underlying …
www.spglobal.com
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Energy & Financial Markets - Crudeoil - U.S. Energy Information Administration (EIA)
What drives crude oil prices: Supply OPEC. Crude oil production by the Organization of the Petroleum Exporting Countries (OPEC) is an important factor that affects oil prices. This organization seeks to actively manage oil production in its member countries by setting production targets.
www.eia.gov
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