"Consumers have been riding an oil price roller coaster for 20 years now. This includes everything from the 2008 recession to the 2020 COVID-19 pandemic. They've learned that booms follows busts, and vice versa. Absent stable and higher fuel prices, we are unlikely to see a rapid and lasting shift to EVs."
"Oil is used primarily in transportation and priced on a global market. That's why U.S. gasoline prices rise even when domestic production is strong. Natural gas is priced more regionally. America's ample supplies help shield consumers from global shocks. Gas fuels power plants and industry - but rarely cars. This is why oil and gas prices don't move in perfect sync."
Oil prices exceeded $100 per barrel following Iran conflict tensions, though prices temporarily declined after President Trump signaled interest in ending the conflict and lowering oil prices. Energy transitions require stable policies and market signals spanning decades, yet temporary geopolitical disruptions have not produced durable change in the U.S. Consumers have experienced oil price volatility for 20 years, learning that booms follow busts. Without consistently elevated fuel prices, rapid EV adoption remains unlikely. Oil prices are globally determined and primarily affect transportation, while natural gas is regionally priced and fuels power plants and industry. The U.S. economy is less oil-intensive than historical periods, providing some cushioning, though consumers still experience pump price impacts affecting political discourse.
Read at Axios
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