Shock from Iran war has Trump’s vision for US energy dominance flailing

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Frank C.

Ars Scholae Palatinae
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Well it isn't exactly "because" of the USA your gasoline is expensive. Gasoline production isn't fixed--they increase or decrease it based on consumption.

Gasoline in the USA is artificially cheap (and yes we should stop complaining)--because it isn't and hasn't been taxed properly for decades, as opposed to other countries who have been more successful at doing so. And by not doing so--use (or "need"), and thus dependence on cars, is therefore incentivized massively.

And the result is for everyone to see. The USA is compltely addicted to cheap gasoline--if it isn't cheap our country collapses. There's no way of travelling most of the country without a car and gasoline. There's basically no public transit, and outside of the NYC/DC corridor there's zero passenger rail. There's no money for it. Further the gas taxes we do collect--don't pay for the maintenance cost obligations of the absurd and comical amounts of roads infrastructure the US has.

If you think taxes should be Pigouvian, that is the tax should cover the negative externalities at a minimum...The US federal gasoline tax doesn't even cover the economic damage from the motor-vehicle deaths that happen annually. IIRC the price of a human life was somewhere around $10,000,000, and there are something like 40,000 motor vehicle involved deaths annually.
I’d be fine with seeing a reduction of use through the re-implementation of smaller vehicles. We had that before, it worked.
 
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Frank C.

Ars Scholae Palatinae
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There’s a stat that I don’t see coming up much when referencing California and its local oil refineries, it was originally gleaned here on Ars in a past article in the form of one statistic; sometime in late 2025 the state surpassed the 20% mark in registered vehicles that were of some BEV variety. When you lose approximately 1/5 of your customer base, there’s not much need for new refineries or putting any money into others. Mentioning that China hit peak oil for transportation use in 2024 and the EU I believe sometime last year, you can see where this is all headed. Throw in oil producing nation Saudi Arabia and its Vision 2030 plan to decouple its economy’s reliance on oil, and you get a firmer picture of future trends. Oh, the Kuwaitis have a clone, they call it Vision 2035.
 
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