If you have been to a gas station to fill up your car recently you probably noticed it costs just a liiitttle bit more than it did a month ago, and a whole lot more than a year or two ago. While we have covered inflation several times in the past (Here, and here) this type of inflation hits different.
That’s because we might not know the price of lumber, wheat or countless other commodities (these are all up btw). We are acutely aware of gas prices because they are literally advertised on millions of street corners across the US. And with prices officially surpassing apocalyptic movie levels, paying at the pump has become painful for most Americans.
And with a price chart like this, it’s clear to see why this rise seems so drastic.
Since this is such a hot button issue for consumers we have seen the hot take artists hit the streets HARD. Our old friend Elizabeth Warren quickly blamed those damn greedy oil and gas companies for profit-gouging and decided that taxing them at a higher rate would somehow make them produce gasoline… cheaper?
Even Bette Midler chimed in to let us know that wind energy costs haven’t increased which is (kinda) true but misses the point: how are we supposed to power a car with wind?
To make matters worse, despite efforts over the last several years, wind power still only accounts for 2% of total energy generation in the US. Renewable energy combined only accounts for 12% versus the 69% (nice) between petroleum (fancy word for oil) and natural gas.
So we are very much reliant on oil and gas to power our world in 2022, and this recent gas spike is making many realize this fact.
Unfortunately, there is no quick fix for this problem either. COVID wiped out many domestic producers in 2020 and, like any other supply chain issue you’ve read about this year, we can’t magically produce more oil despite our best efforts.
AND even if we could, global oil trade exists for a reason. When we say “oil” we often think about it being a singular homogenized product listed and traded under West Texas Intermediate or Brent on commodity exchanges. But on the ground, there are various grades, with names resembling marijuana strains, like “light sweet” or “heavy sour.”
That doesn’t even discuss different types of oil & gas like natural gas, heating oil, etc, etc. (If you have a minute read this article about the reason we trade oil globally).
So when Russia, the supplier of 11% of the world’s oil, decides to invade Ukraine, we have a bit of a problem. The White House moved to ban Russian oil imports this week in an effort to further sanction and penalize Russia for its attack on Ukraine. While this makes sense from a humanitarian and political perspective, it left us with an oil chart looking like this:
What’s the Upside?
While we can all agree that higher gas and energy prices suck. It is a complex issue that cannot be solved with the flip of a switch. It’s not as simple as greedy oil companies, or a lack of investment in green energy. The reality is we still rely on oil A LOT more than we know.
Restoring peace will be the easiest way to return to global trade and help ease oil prices. So, if you needed yet another reason to hope for a swift and peaceful end to the Ukraine conflict, here it is.In the meantime check out some gas savings tips from Shaq.
EJ's Neat-O Stat of the Night: Gas Mathematics?
For Your Weekend
Our round-up of essays, podcasts, and streaming shows to check out over your weekend. We cast a wide net so you don’t have to.
Read:
The Taliban Confront the Realities of Power by Jon Lee Anderson (The New Yorker)
“They say as much as two and a half trillion dollars was spent here since 2001,” he said. “No doubt some great things were achieved in Afghanistan in that time, but you don’t see any big changes in the country’s infrastructure, do you?” Gailani shook his head. “The fact is, most of the money that supposedly came to Afghanistan—probably eight and a half dollars out of every ten—went back to the U.S., and meanwhile the corruption here was out of control. Afghan society became corrupted, and it was that corruption which brought about this day, with the Taliban back in power.” With a smile, Gailani said, “The Americans spent two and a half trillion dollars to clear this country from the Taliban, only to give it back to them again. I will go to my grave trying to figure out this riddle.”
Watch:
The Dropout (Hulu)
The Elizabeth Holmes saga should be familiar, at this point. Hulu gives it the dramatic treatment with Academy Award-nominee Amanda Seyfried carrying the show. Another strong entry that demonstrates how intense pressure to succeed plus gobs and gobs of money can warp someone’s ethics. Seyfried also nails Holmes’ distinct mannerisms (including the weird baritone voice thing).
Watch/Listen:
I Turned The ENTIRE Lord Of The Rings Movie Into A 3 Hour Metal Song (YouTube)
Some YouTuber named Bradley Hall decided to turn Howard Shore’s Academy Award-winning sountrack into a three-hour metal epic. Yes, it’s as awesome - and as nerdy - as it sounds. Khazad-Dum is a stand-out section, BTW.
Chuckle:
