alt Hacker NewsThere is global oil oversupply of ~2M-3.7M barrels/day. China destroys ~1M barrels/day of global oil demand for every 24 months of EV production. Iran needs $164/barrel to break even on their budget, $86/barrel for Saudi Arabia, ~$60 for US shale (per Bloomberg). China has already potentially hit peak oil and ~>50% of new vehicle sales are battery electric or plug in hybrids.
Oil is over, regardless of this admin's propaganda on the topic. If we want to speed up the US EV transition, we push refineries into retirement faster, pushing up refined gasoline prices. No one will build new refineries due to stranded asset risk, so those that remain are on borrowed time.
Oil analysts say there is a supply glut — why that hasn't translated to lower prices this year - https://finance.yahoo.com/news/oil-analysts-say-there-is-a-s... - February 22nd, 2026 ("Coming into 2026, the consensus view among oil analysts was that the crude market was entering a period of deep oversupply, likely to keep depressing prices throughout the year. In 2025, oil prices fell by roughly 20% as the glut widened.")
US drillers cut oil rigs to lowest in four years, Baker Hughes says - https://www.reuters.com/business/energy/us-drillers-cut-oil-... | https://archive.today/84kwl - November 26th, 2025
China’s shrinking oil footprint: How electric vehicle adoption is shaping China’s oil consumption - https://cepr.org/voxeu/columns/chinas-shrinking-oil-footprin... - November 4th, 2025
North American Oil Refineries and Pipelines - https://www.arcgis.com/apps/View/index.html?appid=5e7f84d84b...
(no current oil commodity exposure)
Replies
Gasoline might be on decline (but the gas car fleet will take decades to turn over), but for literally everything else there is no viable alternative. Trucks, ships, airplanes, freight trains, even heating for older buildings.
So no, we need our refineries for a good part of this century. Likely we will keep just the integrated ones (chemical + fuels).
> If we want to speed up the US EV transition, we push refineries into retirement faster, pushing up refined gasoline prices.
Or we could just let electric cars slowly/naturally replace gas cars without artificially increasing inflation.
Ukraine and the CO2 levels are lucky that Russia pumping less oil is "good for America".
> Oil is over
Then why has both global [0] and US [1] consumption been rising year-over-year for the last few years and projected to continue to rise [2]?
All those articles you're posting about short term changes in the dynamics of the oil market (except China, which is remains a net energy importer only because of oil, so they have a strong strategic reason to reduce oil depdence, though they still use quite a bit[3]).
Btw I'm not citing these things because I'm a big supporter of hydrocarbons or against green energy (which will continue to grow with or without boosters, since there is a real demand for that energy), but more so a realist pointing out that we are absolutely not making any progress in reducing our global need for hydrocarbons.
0. https://ourworldindata.org/grapher/oil-consumption-by-countr...
1. https://afdc.energy.gov/data/10324
2. https://www.eia.gov/outlooks/steo/report/global_oil.php
3. https://en.wikipedia.org/wiki/Coal_in_China#/media/File:Chin...