Oil's basically worthless now, but what does that mean for you?
Cars
The price of oil is plummeting right now.
It's at the lowest point it's been in decades, thanks to both Russian and Saudi overproduction and lack of demand due to stay at home orders.
But what's that gonna mean for you long term?
That's the subject of this episode of Auto Complete.
The COVID-19 pandemic is causing havoc across nearly every industry around the world.
And that includes the oil and gas industry.
See, if people aren't allowed to go anywhere then they're just not using gasoline or diesel fuel, which means that demand is the lowest it's been in eons pretty much that would be problematic on its own.
But then Russia and Saudi Arabia to the largest producers of oil in the world decided to get into a bit of a pissing contest earlier this year because Russia decided that it wouldn't lower its production.
To better suit demand, the [INAUDIBLE] government wasn't pleased with that, so it also kept up production.
And now oil is so cheap in [INAUDIBLE] market that pretty soon producers are gonna run out of storage and they're gonna be forced to pay other people to take it away for them.
This crazy little pricing has to some degree trickled down to the price of gas in America where where [INAUDIBLE] prices well under a dollar per gallon in some areas.
This would be great for Americans if we were allowed to go places or if gasoline were an explosive, toxic and therefore dangerous to stockpile.
From national standpoint, oil prices being in the gutter is a great excuse for the Trump administration to top off the The Federal Strategic Petroleum Reserve which had been used off and on over the past couple of decades to keep prices of the pump down, but they're gonna go further than that, according to recent news reports, with plans to double the reserves capacity from around 797 million barrels.
To around 1.6 billion barrels of oil.
Finally, Will these low oil and gasoline prices affect the market for electric vehicles?
I mean, historically, when gas has been cheap, big and inefficient SUVs and trucks have boomed, right?
Well, according to a CNN interview with the lead transportation analyst for Bloomberg New Energy, finance We'll probably have less than one effect and the general economic malaise that's being caused by Coronavirus right now, that analyst Colin McVicker speculates that right now it's upfront costs that are the bar to entry for EBS and oil prices frankly have little to do with that.
We need to wait for battery technology to catch up and drive those prices down.
So that's it for this episode of roaches autocomplete.
I've been Kyle Hyatt you've been very patient.
And I ask you to not only hit those like subscribe and notification buttons if you're enjoying what we're doing here, but Maybe chime in in the comment section and let us know what you want us to cover next.
Until then, stay healthy.
Stay home.
Wash your hands.
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