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Elon Musk Makes a Strange Call To Increase Oil and Gas Output

As strange as it seems, Elon Musk called for an increase in oil and gas output after the Russian invasion of Ukraine sent the gas prices through the roof. According to Musk, the shift to renewable energy can’t accelerate fast enough to protect the consumers from higher prices in the short term.
Elon Musk makes a strange call to increase oil and gas output 6 photos
Elon Musk makes a strange call to increase oil and gas outputElon Musk makes a strange call to increase oil and gas outputElon Musk makes a strange call to increase oil and gas outputElon Musk makes a strange call to increase oil and gas outputTesla Supercharger station
The uncertainties caused by the war in Ukraine sent the gas and oil prices up to levels never seen since the 2008 economic boom just before the crisis hit. This reverberates throughout the economy since pretty much everything runs on fossil fuels today, both for production and for transportation. The shock led Elon Musk to make a rare call for an increase in gas and oil output “immediately.”

Hate to say it, but we need to increase oil & gas output immediately. Extraordinary times demand extraordinary measures,” wrote Musk on Twitter. “Obviously, this would negatively affect Tesla, but sustainable energy solutions simply cannot react instantaneously to make up for Russian oil & gas exports.”

Musk’s tweets come at a time when the Biden administration weighs imposing a ban on U.S. imports of Russian crude oil. A similar idea was dismissed earlier, according to people familiar with the matter. Musk’s call is echoed by oil industry leaders that are also calling for support to boost production.

This is strangely one time when Elon Musk and the big oil are on the same page regarding increasing oil and gas production. For so many times, Tesla’s boss advocated for the phasing out of fossil fuels and an accelerated switch to electricity, especially when produced from renewable sources. But, as Musk puts it, extraordinary times demand extraordinary measures and we’re glad Musk recognizes the extraordinary times we live in.

Crude oil reached a peak of $139 a barrel (Brent) or $130 (West Texas Intermediate) for a short time on Sunday night. The highest price recorded in history was $147.02 on July 11, 2008, on the New York Mercantile Exchange. Regular gasoline price in the U.S. hit an average of $4 per gallon on Monday and is expected to reach $4.25 by Memorial Day.



 
 
 
 
 

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