There Are Few Ways To Bring Down Oil Prices

Americans Can Do Small Things To Help

Many Things Americans Already Do

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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.

Using more public transportation and moving from private cars to buses and trains quickly. In some cities, public transportation is limited. Car use triggers significant gas pollution, which drops when people use buses.

Force people to stay off the roads on some days. This means” Number-plate rotation schemes (e.g., odd/even days) reduce congestion, idling, and fuel-intensive driving in urban areas.”

With increased car sharing, Americans have used carpooling for decades. This allows for fewer cars on the road and is a traditional way for people to save money (and get sleep) while someone else drives.

Change the way commercial vehicles operate. This involves keeping engines well-tuned, which reduces fuel use, usually diesel. Truckers already face diesel prices of $5, which undermine their profits.

Switch commercial vehicle power from liquefied natural gas to gasoline. The availability of LPG has been hit more than that of crude oil. In the US, this change could take years.

Avoid non-essential or business air travel. Jet fuel prices in the US are already rising, and carriers are raising ticket prices and cutting some routes.

Switch to other modern cooking solutions. Much of this would require people to change to electric-powered kitchens. In cases where this can be done, however, it would cut the use of natural gas.

Cut the use of petrochemicals in some of the food used in industrial farming. In farming, switch from “LPG to alternatives like naphtha where feasible.” Again, some of these would, in America, take months or years to implement, but every little bit helps.

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