Electric car and vegan food require their oil30 Dec 2021 06:48
Article in Swedish FT.
Everyone uses oil, but no one likes it. And everyone opposes it. That is why the price of oil is rising.
The price of electricity is a constant topic of conversation, not least for us in the southern parts of the country. That it blew less when it got cold came as a shock.
The oil has almost been phased out, most people think, even though a majority refuel the car more traditionally. And then there was all that other stuff:
* Transport with diesel trucks.
* E-commerce gadgets transported by ship (diesel).
* The vegan food with the packaging (even the "sustainable" package requires its oil).
Not to mention all the electric cars that are now dependent on oil and gas that we burn to get electricity in the tank. Environmental policy is too important to be handed over to the masters of simple solutions.
So far this year, the oil price has gone from 50 dollars per barrel to 79. That means 4.5 kroner per liter. Then there are - in Sweden - all sorts of taxes that mean that petrol now costs more than SEK 17 a liter.
And what's worse - the oil price may well rise further.
Most people probably think that oil in particular will be cheaper.
It is different with electricity. We want it. The only problem is that we use more oil for each passing day, partly to produce electricity (think Karlshamn's combustion of 100,000 liters per hour times a few million in the world), partly for transport.
We have our climate goals and that's good. But even with these, demand is increasing because the world lacks alternatives. Sweden is a really excellent example of a country with great ambitions but without a plan. We are not alone. There are a lot of countries that have chosen the Swedish line, so none at all.
A new report from the International Energy Agency shows that demand for oil will increase much like the pace of the economy. Already next year we will reach new peaks after the pandemic dip.
In a normal business, there are no problems at all because the market will ensure stable production. But now the situation is different and no one wants to be in the match. This inhibits production. Banks want to be green and beautiful and not finance new production at all. And the oil companies will soon be owned only by sheiks in the Middle East or by Vladimir Putin and friends. Then not much is invested and the oil price reaches new peaks.
Unfortunately, these gentlemen are smart and want to milk the cow for as long as possible. And it works. The equation looks like this: minimal investment meets increased demand. Result: rising prices.
Maybe it's for good. Then we will eventually use less oil.
But for Di readers who want to compensate for high electricity and oil prices, there is every reason to look after their house.
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