Is the Development of Electric Vehicles Throttled by the Oil Companies?

Frequent commenter Phil Manke writes:

Hey Craig,

To what extent do you think retail gasoline price levels depend on these government subsidies to oil companies? Do you think gasoline prices would rise significantly if and when subsidies are cut back? Isn’t this the real reason that no politician will champion the trimming of these subsidies? Recent history shows there is significant public backlash when gasoline prices spike. Do you think the lagging development of electric autos and alternate transportation methods is throttled by the petroleum companies? If so, in what ways?

Hi, Phil. Yes, I am told that if we yank the subsidies, gasoline prices will rise somewhat; perhaps $1 – $2 from their current levels.  This would cause a significant back off in consumption, and create a real demand for electric transportation, which in my estimation is a good thing.

Regarding your question about the oil companies, I haven’t studied this thoroughly.  But look at the dynamics behind what we in California went through behind our Proposition 23 last year.  Oil giants Valero and Tesoro were the visible supporters of a bill that, if passed, would have crippled our movement for clean energy/transportation with a maelstrom of lies; they spent tens of millions of dollars in a (nearly successful) attempt to convince voters that clean energy would cause the death of our economy.

A friend told me that ExxonMobil also funded the bill, but worked hard to remain anonymous, and make sure their name would not be associated with it.  And of course a few years earlier, Exxon admitted to (and agreed to stop) funding sham research companies whose only purpose was to discredit the theory of global warming.

As I wrote here:

‘ExxonMobil has manufactured uncertainty about the human causes of global warming just as tobacco companies denied their product caused lung cancer,” said Alden Meyer, the Union of Concerned Scientists’ Director of Strategy & Policy. “A modest but effective investment has allowed the oil giant to fuel doubt about global warming to delay government action just as Big Tobacco did for over 40 years.’

If you Google the subject, you’ll find tons of material on it.

Working with the oil companies is often referred to as “going to the dark side.”  Looks like there’s a good reason for that….

Thanks for your excellent questions, Phil.