gipper
Diamond Member
- Jan 8, 2011
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Doug Casey says with the increase in EVs, there will be a glut of oil driving down prices. I hope he’s right, since I have no intention of owning an EV or oil stocks.
Doug: Almost all gasoline is used for vehicles. In fact, something like 75% of oil production is used for transportation. So, this will put a cap on petroleum prices. There’s going to be a glut of oil. Petroleum’s main use is basically going to be a feed stock for plastics and things of that nature. It’s going to collapse the production, if not the prices, of corn, palm oil, and perhaps sugar as well, because so much of those crops are – idiotically – used as biofuels.
Based on that, it doesn’t make any sense to own an oil company for the long-term.
The bottom line is that the whole world is going electric. Fossil fuels are no longer going to be fuels. They’re going to be basically feed stocks – primarily plastics, fertilizers, chemicals, lubricants, and the like. The demand for gasoline and diesel – which is the vast majority of oil usage – is going way down.
Doug Casey on Electric and Self-Driving Vehicles, Part II - Casey Research
Doug: Almost all gasoline is used for vehicles. In fact, something like 75% of oil production is used for transportation. So, this will put a cap on petroleum prices. There’s going to be a glut of oil. Petroleum’s main use is basically going to be a feed stock for plastics and things of that nature. It’s going to collapse the production, if not the prices, of corn, palm oil, and perhaps sugar as well, because so much of those crops are – idiotically – used as biofuels.
Based on that, it doesn’t make any sense to own an oil company for the long-term.
The bottom line is that the whole world is going electric. Fossil fuels are no longer going to be fuels. They’re going to be basically feed stocks – primarily plastics, fertilizers, chemicals, lubricants, and the like. The demand for gasoline and diesel – which is the vast majority of oil usage – is going way down.
Doug Casey on Electric and Self-Driving Vehicles, Part II - Casey Research