The Cost and Affordability of Oil

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We process oil vertically from the top down. If suddenly we had no demand for gasoline whatsoever we would still need the exact same amount of oil in the world as we did when we did need gasoline. Over time, over decades, we could shift the refinery process so that instead of cat crackers which result in gasoline we can get rid of those and install hydrocrackers which generate more diesel. But this takes a long time and it's quite costly... We're not even building any new refineries now because of the messed up light oil and oil decline in all the regions in the US except for the Permian. In a perfect world 20 years from now, if we didn't need

In this must watch Frankly, Nate illustrates how a reduction in the demand for gasoline will not - as commonly believed - result in a 1:1 reduction in the demand for oil. This is contrary to a widespread perception, which much growth in the Electric Vehicle industry has been based on, about the correlation between a decline in gasoline usage resulting in an overall decline in oil production and CO2 emissions. While a significant portion of oil refining results in gasoline, we need to be aware of modern civilization's deep dependencies on the remaining products that all come from the same barrel of oil. Only then can we understand and plan for feasible pathways to reducing oil production and consumption within the confines of a growth-dependent complex adaptive system. How can movements such as Just Stop Oil better reflect the reality of the current oil production system and our economy?

Stay tuned next week when Nate shares 7 potential paths to a less oil-dependent future.

A special thank you to Joris van der Schot, John Rowan, Robert Rapier, and Art Berman for helpful input on this video.

To Watch on Youtube: https://youtu.be/H-zYjcsLE_E

For Show Notes and More: https://www.thegreatsimplification.com/frankly-original/37-just-stop-oil-part-1-gasoline