Most of us who drive have lived through a pretty freaking dramatic rise and fall of gas prices. Here in the United State, we experienced average gas prices at about $3.80 in the 1980’s and $4.59 in 2008. Right now (June 2017), in my area gas prices are ranging between $1.80-2.40 per gallon. There are some that claim gas prices are based on supply and demand. Others will say that they keep the gas prices low to stop fracking. I say RUBBISH! The real reason that gas prices are low, and will stay relatively low, is the electric vehicle. And for that, I am very grateful.
How can the electric vehicle keep gas prices low?
That is a great question! This is my theory. You see, most of us look at the world through a consumer’s eyes. We are citizens of the world. We care about global warming, the environment, water supply, human rights, mistreated puppies, and…..you get the idea. The fact of the matter is that big business couldn’t care less about anything but making money, improving the bottom line, and survival. So if you are a gas company, like Exxon Mobile for example, you need people to buy your product. We all know that Exxon Mobile produces gasoline for the combustion engines that power the sports cars, trucks, and SUVs, that we love. That includes my 800hp Wide Body Mustang.
EVs are not a product but an evolution
In order for Exxon to keep the pumps flowing, they need to somehow find a way to keep cars parked in front of them. The evolution of the EV (electric vehicle) is a huge threat to gasoline sales. Power our transportation with electric and the bottom falls out of gas sales. This has more than likely been the topic of many, many, big oil board meetings. So, what is the answer? How do the oil companies maximize the profits when an eco friendly economy is on the verge of an evolutionary boom?
What is the answer?
The answer to that question is pretty simple. An eco friendly economy is based on economy. What if consumers choose to buy gas powered vehicles over electric? Well, if the profits are not coming in from the EV market, big oil companies can expect a slowing of the economic change to electric cars. This means that the idea is to make sure that consumers want to purchase gas. The best way to do this is to keep gas prices low from now on. Raise them and consumers will jump on board with EVs.
Low gas prices also mean that we can still have our big trucks, vans for soccer moms, and fire breathing 800hp Mustangs like the author (um…….me!). So it is my theory that gas prices are going to stay relatively low for the duration of the combustion engine era. Sure, we will see some spikes here and there. These spikes should be short lived. Otherwise big oil will be short lived. So enjoy this time when vehicles are huge, comfortable, and putting out more power than they ever have. I know I am.
These are just my thoughts. Feel free to comment, discuss, or lash out.