The Irony of Rising Oil Prices
Recent cutbacks in oil exports by Saudi Arabia and Russia. The war in Ukraine. War between Israel and Hamas. Unrest in the Middle East.
These are the primary factors that are causing oil prices to rise, which in turn causes gasoline prices to increase. The law of supply and demand says that rising prices should reduce demand and make people conserve more. And that should be good for the climate by reducing CO2 emissions. Right?
Unfortunately, it doesn’t always work that way. In fact, what seems to be happening instead is that higher oil prices are spiking oil production, because higher prices make producing oil more profitable. Some oil fields that are past their prime were not profitable until the price of oil reached a certain level because it is simply more expensive to extract that oil than it used to be. When that price level was reached, those fields started producing again.
Higher prices also mean that it’s easier for oil producers to lure investors seeking big returns on their investments.
So the net effect of higher oil prices has been increased oil production. And unfortunately, that is bad for the climate, because fossil fuels like oil, natural gas, and coal are fueling climate change, with severe potential consequences for ourselves and our posterity.
But it could also be fulfilling biblical prophecy, as I explain in “Apocalypse Soon,” which is Chapter 11 in my book, Beyond Blind Faith. You can read that chapter in its entirety here—and it’s free.To learn more about the books I have written, including excerpts you can read for free, click on “My Books” at the top of this page.
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