Last month we discussed how the Russian invasion of Ukraine has shown the world how vital electric vehicles are for the future. Oil has proved to be too volatile a commodity to rely on, and we are all familiar with its environmental impact. Gas prices have become uncontrollably high, leaving citizens with an unnecessary problem to deal with. There are multiple causes for the hike in gas prices, however, one of the largest is definitely the Russia-Ukraine conflict (which is still ongoing despite taking a slight step back in coverage). Unfortunately, it looks like gas prices could rise even higher given the current market conditions.
One source confirming this idea is Exxon Mobil CEO, Darren Woods, who has said the plan to shift to renewable energy quickly and quite abruptly will cause society to “pay a high price.” The national average for gas prices is around $5 right now, which is pushing many drivers to reconsider the situation they are in altogether and how to deal with it. The government policies potentially coming into the picture fail to balance the current demand for affordable energy. With the need for lower emissions Woods has said these will cause an underinvestment in the oil and gas industry, and in turn correlate to higher prices in oil and natural gas.
What do you think about this perspective on gas prices and even if it’s true, would an abrupt shift towards renewables be worth it?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.