Supply Chain Optimization

Unintended Consequences + Diesel $4.849

The unintended consequences of developing Electric Vehicles (EVs) are numerous. Sometimes collateral damage is self-inflicted.

Here are examples.

The push for Electric Vehicles and “clean” power has the unintended consequence of:

  • Large mines must be developed for things like nickel and rare earth elements. Current mine capacity is already insufficient. The Russia/Ukraine boycott means that many mines won’t meet today’s requirements. “If EVs are to account for two-thirds of all new car purchases by 2030, dozens of new mines must be opened.” Source: Mark P Mills (Issues.org)
  •  “Building solar and wind systems [to power the EVs] requires roughly a tenfold increase in —concrete, steel, glass, etc.—to deliver the same quantity of energy as building a natural gas or other hydrocarbon-fueled power plants.” Source: Mark P Mills (Issues.org)
  • Because of the Jones act preventing shipments of oil from one US port to another US port on non-US ships, Hawaii currently buys its oil from Russia.
  • Global oil supplies are dwindling as buyers avoid Russia (and the price for Russian Crude is down ~30%) — but on 2-28 (After the invasion started), Saudi Arabia confirmed its commitment to the OPEC+ agreement with Russia. Source: Jakarta Post. Now the Saudis can’t take advantage of higher oil prices.
  • Biden is now cozying up with Venezuela, which has the world’s largest oil reserves, but a government the US has sanctioned to get oil.