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Message Subject Tweets from around the U.S. " long lines at gas stations right now!" Panic buying! Fights!
Poster Handle ArmchairObserver
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There is no permanent gas doom coming. Rest assured. Primary reason why? This is the major oil companies' bread and butter that we're talking about and they have no plans on ever ending their control over the market. They control it all. Let that tidbit sink in slowly and thoroughly. They have spent the last few decades acquiring research and patents for potential alternative energy and fuel sources for the day should petroleum become scarce. I heard this directly from an employee of one of the largest oil companies in the world after I asked about what they would do should peak oil hit. If you don't believe me, all you have to do is start looking at their annual 10ks. They sometimes like to parade around the research to advertise just how charming and green they really are.

What is being planned is most likely a transition. My best guess (no longer an insider so just guessing but with some industry knowledge) is that the planned transitional fuel will be E85. The reason why I'm pretty confidant in saying this is because for the past several years, nearly every new car made has been flex fuel compatible. In other words, it can run on E85 which is 85% ethanol and 15% petroleum. One of the biggest issues of trying to switch a market like this one is making sure that as many vehicles on the road are capable of using the new product as possible. That will take 10-20 years to do. When you start seeing that most cars on the road are flex fuel compatible, then you'll most likely see E85 popping up everywhere. The primary reason why they are doing it now is because they haven't yet perfected the darn thing and the issues with it--so they say. I'm not entirely convinced because what is extremely profitable right now is fossil fuels. They're not going to give up that golden goose until they really have to.

Now that doesn't mean that they aren't going to mess with the markets a bit. It's really just a couple oil companies out there after all and they have been divesting their refineries in the US. This makes it kind of nice for them to have temporary shortages that will boost prices from time to time.
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