Finance

Elon Musk calls for more oil and gas production

by Charlie Smith on March 5th, 2022 at 6:27 AM
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      The CEO of the world's most famous electric-car company is calling for ramped-up extraction of fossil fuels.

      Tesla CEO Elon Musk stated on his Twitter feed that "Extraordinary times demand extraordinary measures".

      Musk's net worth is US$229.1 billion, according to Forbes, putting him at the top of its list. Amazon founder Jeff Bezos is in second place at US$171.4 billion.

      In 2020, Russia was the third largest producer of crude oil, all other petroleum liquids, and biofuels, according to the Energy Information Administration. That year, Russia generated 10.5 million barrels per day per day, accounting for 11 percent of the global supply.

      The United States was the largest global producer in 2020, generating 18.61 million barrels per day of crude oil, all other petroleum liquids, and biofuels. Saudi Arabia was second at 10.81 million barrels per day and Canada was fourth at 5.23 million barrels per day.

      In 2019, according to the EIA, the U.S. was first in consumption at 20.54 million barrels per day, followed by China at 14.01 million barrels per day in 2019. Russia ranked fifth in this category, consuming 3.7 million barrels per day in 2019.

      West Texas Intermediate crude is currently priced at $115.70, according to oilprice.com.

      Meanwhile, on Friday (March 4), the share price of ExxonMobil climbed 3.74 percent to close at US$84.09. That approached its 52-week high of US$84.58.

      Another large U.S. producer, Chevron, saw its share price rise 1.56 percent on the day to close at US$158.65. That's just down from its 52-week high of US$159.95.

      Musk's call for more oil and gas production came as the United Nations continues issuing warnings about the impact of the climate crisis.

      "Glaciers and ice sheets in polar and mountain regions are already melting faster than ever, causing sea levels to rise," the UN website states. "Almost two-thirds of the world’s cities with populations of over five million are located in areas at risk of sea level rise and almost 40 per cent of the world’s population live within 100 km of a coast. If no action is taken, entire districts of New York, Shanghai, Abu Dhabi, Osaka, Rio de Janeiro, and many other cities could find themselves underwater within our lifetimes, displacing millions of people."

      On February 28, the UN's secretary-general, António Guterres, described the most recent Intergovernmental Panel on Climate Change report as "an atlas of human suffering and a damning indictment of failed climate leadership".

      He also accused the biggest polluters of committing "arson on our only home".

      "Nearly half of humanity is living in the danger zone now," Guterres declared. "Many ecosystems are at the point of no return now. Unchecked carbon pollution is forcing the world's most vulnerable on a frog march to destruction now."

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