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Understanding Oil Prices and Why Buying an EV Makes Sense

Hello friends and neighbors,


I am writing to you today to help clarify a very complex issue that appears to be causing a lot of misinformation. This topic is oil prices. Today, I am going to discuss certain elements of this topic and point to some sources that hopefully will help clarify this issue for us all. I will then show how this impacts each of us in various ways.


First, let’s understand where we really are:

  • Based upon data from the US Energy Information Administration, in 2020 (latest information in the graphic, see https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php) the US produced more petroleum than it consumed. For the sake of trying to keep this simple, I am focusing on petroleum, not on oil. A barrel of oil can be processed into many products, including petroleum. Here is the data:

  • Consumption – 18.12 million barrels per day

  • Production – 18.40 million barrels per day

  • Imports – 7.86 million barrels per day

  • Exports – 8.51 million barrels per day

  • Here are the top five sources of our imported petroleum in 2020:

  • Canada – 52%