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by genman
877 days ago
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You are missing the forest behind the trees, I'm afraid of. The reason behind the increase of US fossil fuel production is geopolitical to suppress Russian profits and its ability to finance its genocidal war. Russia can't lower much of its production cost. Major part of the Russian state budget is based on profits from the fossil fuel sales - no profits, no war. If US didn't increase its production then Russia could sell at higher price and many countries would be forced to buy it as there would be no alternative. This would allow it to continue the war longer and possibly attack more countries. Unfortunately the formula of the problem is complex with many variables. There are no easy solutions. The best strategy we have right now is to convince China to reduce its fossil fuel usage so everyone else could scale down. |
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And the only effect of PRC consuming more energy for manufacturing is other countries can manufacture less. Why do we need to reshore / diversify / build redundant factories/supply chains. Clearly that's in jest, but the logic works both ways, why would PRC not harness energy to improve her geopolitic posture when US is using it to enhance hers. Long term demand also works on efficiency paradox, the more supply there is, the cheaper something becomes and the more it tends to be used. US ramping up more supply/reduces, or rather increase cost of green transition. Large reason why oil demand is set to plateau long term is PRC is using oil to make renewables with cheap RU and Iranian oil. The point is, as long as US benefits from being fossil exporter by playing up her geologic advantages, PRC is going to reap benefit from converting fossil to goods by playing up her manufacturing advantages.