The united states has an insatiable appetite for Oil. Our desire for progress and prosperity has us hooked on the standard of living we enjoy due to mobility. But what if that was all about to change? Our addiction to Oil won't be remedied overnight. But a new dawn is coming and you should embrace it.
While we aren't the largest consumers of electricity, we safely have the world beat in gasoline consumption at 143 Billion gallons in 2016. But what will happen to gasoline prices when we are using 40 Billion gallons less due to the emergent electric vehicles market?
4,686,537,600 MW.H/YR puts the USA in 2nd place for electricity, but for how long will we be second place? In 2016 38% of the 2 million cumulative sales for electric vehicles were made. Clearly that shows a major spike in demand for electric vehicles, therefore those vehicles will need electricity.
Given that electric vehicles are now making mass market price points and the competition is heating up, it's important to note that our electric grid is already burdened and may not support the added load.
We are used to 99% up time in most of the country. That could potentially change if individuals don't empower them selves by adding solar power to their homes and unplugging from the grid.
It is my opinion, the utility companies are not adequately prepared to handle the spike in demand. I should also note that I am perfectly OK with that. I believe that utility companies will increase costs to cover additional capacity. I'm OK with that too! Why? Because producing your own electricity as of 2017 is more viable than grid power. Sure, it spells trouble for the government sanctioned monopolies, but it also signals the beginning of a new renaissance in innovation and technological advancement once we adapt.
I've been an energy broker for several years now and I know my demographics. Here in Ohio, the average family can expect to pay more for electricity over the course of 40 years, than their mortgage. Mind not blown yet? We have some of the cheaper rates in the country at $0.06 per KWH.
I won't begin to speculate when the tipping point will be, but once people realize that producing their own power is the less expensive option, that growth will be explosive.
Once we can live without paying for electrons, we can begin to move around (electric vehicles) and free up both household electricity and transportation expenses simultaneously.
Gasoline supply will begin to outstrip demand exponentially as the new market emerges for electric vehicles.
What should you expect?
Gasoline prices will naturally drop. The allure of cheap gasoline is a facade, don't be fooled. It's simply a reaction to more supply than actual demand.
That's a good sign. It would mean we are weaning our selves off our addiction to oil.