Elon Musk Calls For Increased Oil and Gas Production Immediately

Elon Musk Calls For Increased Oil and Gas Production Immediately

Elon Musk, through Twitter, has called for the immediate increase in oil and gas production as oil has hit around $130 a barrel now, saying that if we do not do this, we will not have the energy to power human civilization.

At least not in the near term. Over the long term, the hope is that renewable and sustainable energy (like the sun with solar and batteries) is able to power human civilization. This is an interest statement by Elon Musk, but I believe he is correct. With Russia being cut off more and more from the world, and supplying a good portion fo the world's oil, other countries need to pick up the slack.

Elon Musk has also stated that countries with dormant nuclear power plants should turn them back on and that it is critical for national and international security. He continued that nuclear energy is safe and that he would go to the nuclear power plant and to the nearest food store and eat the food on TV to prove the safety.

Elon Musk is known for doing bold things and this falls in line with that. The world is in a transition phase right now to sustainable energy, but that energy is not ready yet and won't likely be ready for another 20 or more years. We have to maintain the production of fossil fuels until such time the world is ready for sustainable energy.

Hate to say it, but we need to increase oil & gas output immediately. Extraordinary times demand extraordinary measures.— Elon Musk (@elonmusk) March 5, 2022

Hopefully, it is now extremely obvious that Europe should restart dormant nuclear power stations and increase power output of existing ones. This is *critical* to national and international security.— Elon Musk (@elonmusk) March 6, 2022

The Future of EVs

Right now, Tesla (and to some extent, several Chinese EV makers, and Polestar) are the only companies in the world mass producing EVs (electric vehicles) at a large scale. Unless more companies can ramp the production of EVs at scale, we are going to be on fossil fuels for at least another decade or two. Oil and gas are used in the making of components of ICE and EV cars, and with more energy storage, hopefully that ends soon too.

Tesla has said that their Tesla Energy business, which was supply and chip constrained in 2021, will be able to ramp much more in 2022 and beyond. This is important because not only do vehicles need to get off fossil fuels, the energy used to produce them and other products needs to get off fossil fuels.

When this happens, there won't be any conflicts and economic turmoil in regards to energy sales from countries, but instead, energy will be generated much more cheaply through solar, wind, and other renewable sources, making countries energy independent. This will remove a big strain on the battle for resources in our world.

Tesla is going to continue ramping production by 50% or more each year for the foreseeable future - and I think until at least the end of this decade (2030). Robotaxis, hopefully, will also ease the burden of fossil fuels, serving more people than single car ownership will.

Will other companies be able to match Tesla's speed and innovation? So far, none have been able to do so. I am wishing all EV companies success in this difficult time - they are needed now, more than ever.

Should the world increase oil and gas production immediately? Will this benefit EV companies?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

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