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There Are Few Ways To Bring Down Oil Prices
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Americans Can Do Small Things To Help
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Many Things Americans Already Do
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Have You read The New Report Shaking Up Retirement Plans? Americans are answering three questions and many are realizing they can retire earlier than expected.
This is how the IEA put it. The world needs “Immediate actions to reduce demand.” That was a highlight of today’s “New IEA report highlights options to ease oil price pressures on consumers in response to Middle East supply disruptions.” The report was not a sign of panic. However, it was close. The tensions ramped up by the war in the Middle East have increased in just the last several hours. Donald Trump says he will bomb the facilities that provide electricity and other energy to Iran’s population. Iran says it will bomb refineries, nuclear research facilities, and storage facilities that contain natural gas and oil. Oil prices have moved even higher above $100 a barrel. Maybe, according to new accounts, some of that can be avoided.
The parts of the world that rely on oil exports from Gulf states are getting almost none as tankers are bottled up outside the Strait of Hormuz. Ships that transit the area also carry fertilizer and metals used in a range of products, including components critical to semiconductors. As Morningstar points out, “The global tech industry could be the latest to be hit by a protracted conflict in the Middle East, with fresh pressures on semiconductor supply chains potentially hampering the artificial intelligence boom.”
Have You read The New Report Shaking Up Retirement Plans? Americans are answering three questions and many are realizing they can retire earlier than expected.
Since the supply side of the oil problem is broken, what about fixing the demand side, even modestly? Most of the IEA’s solutions will not bring oil prices down much, but even the small suggestions are helpful. Along with its broad description of the problem, it also outlines a path to reduce demand at the consumer and small-business levels. They are “policy measures.” However, they don’t need a policy to be followed. “This shows many countries are already acting to protect consumers through conservation and financial measures similar to those discussed in the report.” The list is meant to be global, but most of it applies to the US.
The IEA lists 10:
Work from home where possible. Especially for jobs suitable for remote work, reducing fuel demand for cars, buses, and other fossil-fuel-powered vehicles.
Reduce highway speed limits by 10 MPH or more. These lower speeds cut fuel consumption for passenger cars, vans, and trucks.
