As of 2017, the United States regained the position of the world’s top oil producer. We now produce 15 million barrels per day (mmbd) of crude oil. That’s the good news, the bad news is that we consume 20 mmbd. The difference is made up from imports. Dependence on imported oil puts our markets at risk to forces beyond our control. A supply disruption in any overseas market would affect the price of oil here as oil is traded internationally.
As an example, we don’t buy oil from Russia or Iran, but if some or all of their production is taken off the world market, the price we pay for even domestically produced oil will rise. Oil is a fungible commodity and the price is set by international supply and demand.
Virtually all the crude oil we use goes to the manufacture of fuel- gasoline, diesel, and jet fuel for transportation. Conflict overseas could cost us dearly at the pump. All our other energy sources such as natural gas, nuclear, and renewables are produced exclusively here in the United States and therefore much less subject to the vagaries of the international markets.
The sensitivity of our transportation system to price fluctuations could be greatly reduced by a rapid conversion to electric powered vehicles because crude oil is not involved in the production of electricity.
Intense research is increasing the efficiency of renewable batteries. At the same time, economies of scale from increased production is lowering the cost. The technology already exists or is in pilot scale production for everything from passenger cars to big rigs like 18-wheelers.
Most automakers are already producing plug-in hybrids. These are really electric vehicles with a limited range, up to 50 miles. They also, however, have small gas engines that act as generators to power the vehicle after the battery charged from the grid is exhausted. Less common but in production are more exotic vehicles like the Tesla or the more mundane Chevrolet Bolt. These vehicles are total electric cars with ranges between charges of over 250 miles. As charging stations are built out, these total electric vehicles will rapidly replace the passenger vehicle fleet.
The production of electric light-duty delivery trucks trails passenger cars but not by much. Fleet delivery vehicles with limited daily range requirement are an ideal market. Daily round trips back to a station house for overnight recharge would actually help the electrical grid, as excess power already exists at night. Ryder Trucks has just ordered hundreds of electric trucks from a start-up company in – where else – California.
Buses for everything from rural schools to urban transportation systems are coming into play. Blue Bird Bus Company is now taking orders for electric buses to be delivered this year.
Most surprising is the advent of all-electric Semis. Elon Musk of Tesla and Space-X fame is now building prototypes of electric Semis with 80,000 lb Gross Vehicle Weight. These are the industry standard currently fueled by diesel that fills the interstates and move over half the freight in the United States. Tesla’s Semi is designed for a range of 500 miles and a recharge time of half an hour.