No More Gas | The Worst World Gas Crisis, The U.S is facing a diesel shortage the price of diesel has been soaring for months 25 days from now there will be no more diesel up 27 and 28 percent it’s a very very high bill.
Gas Crisis History
Worst World Gas Crisis, 1973 the United States faced an oil crisis for prices quadrupled in a year. Shortages ensued and rationing became so common that people began to hold on to whatever they could get their hands on well today. It appears that history is beginning to repeat itself now that the US is potentially facing the worst oil crisis in history with fears that we could soon be running out.
After all gas prices are already near their all-time highs production is about to be cut even further by 2 million barrels a day and some fuels are on such short supply that the U.S has just 25 more days left so given all of this talk about the worst energy crisis in decades draining reserves and record high prices for anyone invested in oil, Why oil production will continue to decrease and how this is about to have a Major Impact throughout our entire economy.
US Economy on Energy
No More Gas, The United States uses about 20 million barrels of oil every single day which makes us the number one consumer of oil in the world. By far but there’s a bit of a catch since, we only produce 18.6 million barrels of oil a day we’ve become reliant on other countries to fill that deficit and that is where things get interesting see on a global scale not every country uses the exact same amount of oil on a regular basis some months could be higher than usual and other months could be lower than usual.
Since oil production can’t quickly be turned off and on with a moment’s notice countries are often left with a surplus or a deficit depending on how much they actually use. Because of that when they have too much they’ll sell the access to other countries who have too little and when they have too little they’ll buy it back to maintain a consistent amount day after day.
The Worst Oil Crisis in Simplest Form
The worst world gas crisis, What happens when everyone wants oil at the exact same time and there’s not enough to go around well in this case even though the United States produces almost as much oil as we us it’s the wrong kind of oil so we exported and sold nearly half of our production to 176 countries. Then we turned around about the rest that we need from Canada Mexico Russia Saudi Arabia and Colombia of which the United States is beginning to catch up that might have led to some problems.
What is OPEC?
When it comes to this you first have to understand OPEC. “Which is the organization of petroleum exporting countries”. This is a group of 13 major oil exporting Nations who have teamed up to ensure that oil prices are stabilized throughout the international market without any major fluctuations. They currently control more than 80 percent of the world’s crude oil supply or we guess more simply put instead of working together and competing with one another they decided they would make more money working together. So OPEC was created why does this matter well together OPEC produces is more than 40 percent of the world’s entire oil supply which is way more combined than we make as the United States and uh it would be a shame.
If they were to ever retaliate against us you know right just take 2016 as an example oil prices plummeted because the US began increasing its output with greater efficiency lowering production cost and costing more Supply to hit the market well that upset the countries who didn’t like to see lower oil prices and even though tensions were temporarily resolved there continued to be the ongoing threat that the U.S could dominate the oil market so in 2020 when demand slowed down U.S oil was building up from a lack of demand and prices were falling below our production cost.
Russia on Oil Production
Russia clapped back by refusing to cut production to stabilize prices and then they did the unthinkable they pumped even more oil in an attempt to destabilize the market and gain market share now even though an agreement was later reached and oil production was eventually cut to prevent prices from falling too far the tension never completely went away and today in the middle of a global oil shortage OPEC strikes back at a time of record High inflation by cutting oil production again.
Why is it a big deal! Well imagine it’s like cutting off the water supply during a heat wave causing prices to increase even further during a time of record high inflation and starting in November oil production will be decreased by 2 million barrels a day on the one hand the United States believes that this is done in support of Russia. Who relies on high gas and oil costs to sustain their economy but on the other hand Saudi Arabia believes that we’re going into a global recession demand is going to fall and they want to get ahead of it before it’s too late to end oil prices crash.
The global economy expected to slow down it’s imperative to stay one step ahead of everyone else, so If they’re predicting a recession and demand should in theory begin going down is the United States suffering from record high gas prices.