No One Has the Balls to Tell You the Truth About Gas Prices, So I Will

right now not much oil is being produced in the world many dot production will be restored next year to the pre-pandemic level at the same time we have a global energy crisis with a sharp rise in gas and coal prices as energy demands grow the low production won't be able to meet the demand which means prices continue to rise so how did this happen in the spring of 2020 oil prices plummeted due to the pandemic remember airplanes were grounded cities running locked down and there was an enormous drop in fuel demand that's why the oil supply at that time was 20 percent higher than the demand needless to say members of opec agreed to reduce their oil production by a record amount almost 10 million barrels per day which is about 10 percent of world production this was the opec plus deal the us and other countries that aren't normally part of opec also cut production so all in all this meant a reduction of some 15 million barrels per day or more than 15 percent of the world's oil production prices quickly rose to 40 to 45 dollars per barrel exporters suffered huge losses even at relatively high prices that's because the cut in production cost them tens of billions of dollars the first tough pandemic lockdowns helped the global economy to start recovering so exporters started to increase production again they were cautious they didn't want to restore production fully or too quickly otherwise that would bring a drop in price the pandemic is still ongoing and if any country with a large economy let's say china for example would reinforce yet another new lockdown that would mean demand will plummet again so you can see how the situation has been quite volatile initially analysts thought that even a slow increase production by the opec members would make supply exceed demand for january 2022 and therefore lead to a drop in prices they believed this because u.s companies increased offshore oil production to pre-pandemic levels a few months ago before the pandemic the u.s production level led to an oil surplus on the world market but this initial forecast of an excess of supply turned out to be wrong this summer it became clear that a huge additional demand for oil could emerge in a world in the upcoming months the first time in decades the price of natural gas in europe and asia exceeded the price of oil in terms of energy release so that's why analysts believe they'll see significant increase in oil demand from 750 000 to 2 million barrels per day this summer it also became evident that most of the opec plus members couldn't increase production even to the quotas that they'd agreed upon at the same time oil demand was growing much faster than previously forecasted in september 2021 the opec plus members increased production faster than they initially agreed to but they still couldn't keep up with the demand only russia and iraq are producing more oil than their quotas allowed the problem is many of the oil exporting countries don't have enough investment to return to previous production levels opec leadership denies this of course some people speculate that maybe they're just not reinvesting in oil production at pre-bidemic levels since the global economy is transitioning to green energy they point to the fact that even the largest private oil companies in the world have been investing in renewable energy in addition to future oil expansion recently british petroleum has been gambling big on a fast transition from oil to renewables that's because all major oil players are facing lots of pressure from government regulators and investors to develop cleaner energy and divest from fossil fuels since it's the primary source of greenhouse gas emissions that cause global warming so bp has been gambling to transition faster than its peers bp proposed to cut oil production by 40 or about a million barrels a day that's equal to the united kingdom's entire daily output in 2019 in addition bp is boosting capacity to generate electricity from renewable resources equivalent to the power made by 50 us nuclear plants going back to rising gasoline prices some people speculate that some oil exporting countries aren't quick to return to previous investment level in new oil production projects because of green energy they say the current oil situation is an opportunity to transition more quickly to green energy and abandoned oil but unfortunately it's not all that simple the chief planner of the international energy agency which is responsible for green energy transition said that the transition could become quite messy the iea's new version of the energy transition plan shows a noble yet ambitious goal to achieve zero greenhouse gas by 2050. this will limit climate change to 2.7 degrees fahrenheit they believe that only the speed of transition will allow avoiding catastrophic consequences for the climate population and economy let's talk about electrification a few years ago stanford economists projected that evs will kill the global oil industry by 2030. if the world economy really starts abandoning fossil fuels at the speed that politicians are planting then some people think will reach the peak of oil consumption sooner than later which after that point oil demand will only go down would it surprise you to hear that gas giants bp and shell acquired ev charging companies they bought them with chump change to diversify their holdings but it just goes to show that the oil industry acknowledges the electric future but the fact is that it'll probably take a bit longer than that before the ev uptake destroys oil demand frankly evs have a way to go before it can challenge the internal combustion engine industry and subsequently the oil industry to a significant degree here's why last year light plug-in and fuel cell cars plus electric city buses and two wheelers displaced some 370 000 barrels per day expert estimate that number will grow to 1.5 million barrels per day by 2025. that's 400 percent you might think that sounds like an insanely huge number the fact is that would be just 1.4 of the world's total oil demand so it's just a tiny dent and that's why oil investors aren't losing sleep over it yet here's another interesting metric last year just 2.7 percent of cars sold their evs experts believe it'll grow to 31 by 2040. so the ev has an upward trend and its long-term outlook is bright but nevertheless it's still decades away if governments want to accelerate the ev revolution they need to create more incentives for consumers to buy evs and create more subsidies to speed up the infrastructure growth and battery innovations recently biden administration has proposed investing heavily on ev infrastructure the uk previously had plans to ban sales of gasoline diesel cars after 2040. but last year prime minister boris johnson announced they're moving up the deadline to 2030. just consider what major car companies are doing right now general motors pledged to focus on electric cars and be fully electric by 2035. jaguar plans for their cars to be fully battery electric by 2030. land rover projects their cars to be 60 bev by that time ford announced that all their cars in europe will be eevee by 2026. this fuels a lot of hope for the ev sector every revolution every war is about chaos and that's what we're seeing advances are being made on both sides it's hard to discern what the real turning point will be and when you have people with different views and projects and the only common thing we share is just knowing the storm is brewing let's talk about how the oil and gas lobbyists are reacting so the us senate passed a budget resolution in august for a 3.5 trillion dollar budget reconciliation package but then there's the american petroleum institute and you also have the american gas association they're two of the most powerful oil and gas lobbies in america since that budget resolution api and aga have been flooding facebook with targeted ads that oppose climate initiatives api alone sent 423 000 on facebook ads and these ads have been viewed some 21 million times their average ad spend is a bit shy of 11 000 a day which of course is peanut money for them aga has been spending too they spent 18 000 on facebook ads with the goal of moving people to contact their members of congress and vote no to higher energy costs and against the energy tax in the us unleaded gasoline usually comes in three grade normally we have 87 for basic or regular 89 for plus or mid grade and 93 for premium but what is octane rating and what does it mean octane rating refers to how resistant the fuel is to combustion by pressure the higher the octane rating the more compression the fuel can withstand before it ignites higher octane fuels are often required or recommended for engines that use a higher compression ratio and or use supercharging or turbocharging to force more air into the engine increasing pressure in the cylinder allows an engine to extract more mechanical energy from a given air fuel mixture but requires higher octane fuel to keep the mixture from pre-detonating octane rating does not relate directly to the power output it has nothing to do with the energy contained per liter or per kilogram of fuel fuels with a higher octane rating are used in higher compression engines that potentially yield higher power but such higher power comes from higher compression of the engine not necessarily from the gasoline do you know why the octane numbers of gas stations in the us differ from those in europe europe has 95 and 99. does this mean that europe uses higher octane no because in the u.s gas stations use pump octane number or p-o-n but europe uses iran which means research octane number it's just a matter of definition so the american 89 octane or mid grade is the same as the european 95 octane and the american 93 or premium grade is the same or similar to the european 99 in 1921 an english engineer harry ricardo discovered that the more iso octane in the fuel the more resistance it was to detonation he developed the scale to measure detonation resistance gasoline made up of 100 iso octane was given a octane rating of 100 perry's work ultimately led to the general use of octane ratings there are a lot of myths about octane so answer true or false the different octane levels means different energy content different octanes burn fuel hotter or colder or faster or slower different octanes burn fuel cleaner and more fully if you answered yes to any of these myths then unfortunately you were wrong because one the different octane levels all contain the same energy content two they also all burn the same temperature at the same speed three a clean or complete fuel burn depends not on the octane but mainly on the air fuel ratio in your car's combustion chamber so let's break it down what happens if your car requires high octane gas but you fill it with low octane instead nowadays modern cars have electronic control units ecu's that can adjust engine timing and performance to operate even with lower octane fuel so your car will drive but engine power and fuel economy will still suffer frequent use of fuel with octane lower than what your car needs can lead to poor engine performance and eventually damage both the engine and the emission control system here's why ignore the ecu for a minute in general using lower octane gas in a high octane gas car means that under high pressure gasoline will ignite spontaneously and earlier than it should and what is called detonation that is thermal shock will occur this is a spontaneous uncontrolled ignition of fuel in the engine detonation leads to a sharp rise in temperature and even to a possible explosion will your engine survive the detonation and how do you know if or when it's happening simple you hear a knock sound from the engine when the detonation occurs this knock is created by pressure waves that occur during the rapid combustion of the mixture and get reflected from the walls of the cylinder and piston this reduces the engine power and accelerates the wear inside so if detonation waves occur the engine can be damaged or destroyed that's how gasoline with a lower octane rating can damage the engine pistons if you regularly use it in a car that requires high octane what about the opposite scenario let's say your car maker requires regular unleaded gas but you upgrade with mid grade or premium will this affect fuel economy or engine performance it depends on your driving conditions for example in most cars higher octane fuel can improve performance and gas mileage and it can also reduce carbon dioxide co2 emissions during severe duty operate like if you're towing a trailer or carrying a heavy load especially in hot weather but under normal driving conditions you'll probably get little to no benefit in fuel economy or engine performance in that scenario you have to ask yourself why pay more for premium gas so is there a difference between what your car maker requires versus what they recommend yes there is a difference in general if your vehicle requires mid-grade or premium fuel then higher octane fuel is worth the extra cost if your owner's manual says your car doesn't require premium fuel but says that your vehicle will run better on higher octane fuel in other words it's recommended but not required well then it's really up to you the cost increase is typically higher than the fuel savings but some drivers value lower co2 emissions and lower petroleum usage by even a small amount and for those drivers this is more important to them than costs in conclusion what fuels should you use for your car at minimum use the fuel grade required by the original car manufacturer where can you find that information it's always written in your car manual if you lost your manual you can check either the fuel door because it's usually written there or if it's not there it's probably on the fuel cap or if it's not there check the fuel gauge on your dashboard here's a quick cheat sheet on how gasoline works in your car so you get to the pump you fuel your car the gas goes straight to the gas tank well inside the tank is a fuel pump it pumps the gas into your car's fuel line the fuel filter filters out debris in a gas next the fuel injector sprays gas into the piston cylinder the gas gets processed in the engine typically in a four stroke cycle first air gets sucked into the cylinder the air and fuel mix as the piston moves downward in the cylinder as the piston moves back up it compresses the air and fuel mixture then the spark plug ignites the compressed air and fuel this causes a combustion reaction the liquid gas gets converted into exhaust gas which forces the piston back down the exhaust valve is open the exhaust gases leave the cylinder travel through the exhaust pipe through the catalytic converter which reduces the pollutants into less toxic substances like carbon dioxide nitrogen and water and then the gas is passed through the muffler and into the air then there's gas additives they can work to increase the octane rating of gas inhibit corrosion lubricate and allow higher compression ratio for greater efficiency and power however some additives are harmful and are regulated or banned in some countries oftentimes gas retailers treat the gas they buy with specific additives ever hear of top tier detergent gasoline in 2004 top tier gasoline was developed to go beyond the minimum standard for detergent additives to better protect engines from carbon buildup and deposits on the intake valves nowadays engines have become far more precise operating under tighter tolerances and higher compression ratios with cleaner emissions and improved fuel economy and that's why many big automakers audi bmw fiat chrysler automobiles general motors honda mercedes-benz toyota and volkswagens support top tier gas top tier fuel must maintain levels of detergent additives that result in a higher standard of engine cleanliness and performance as compared to the epa minimum requirement also it can't contain metal additives let's talk about ethanol ethanol is an alternative alcohol fuel it's made from plant materials like corn and sugar in fact did you know that much of the corn grown in the u.s isn't eaten popped or creamed some of it is turned into ethanol it's added to gasoline because it's a cost-effective way to raise the octane rating of gas also ethanol burns cleanly so it's also a way to help reduce emissions ethanol can be burned in a gasoline engine but it's less than ideal compared to gasoline reason is it has less chemical energy than diesel or regular gasoline but since ethanol comes from renewable sources it makes a lot of sense to use as much of it as we can ever see the badge for e85 and wonder what that is e85 is a blend of 85 ethanol and 15 gasoline it's designed for use in flex fuel vehicles which can use both gasoline or a mixture of gasoline and ethanol well what happens if you actually put e85 in a non-flex fuel vehicle well your car may run poorly and a check engine light might turn up but it shouldn't cause major damage to your car just be sure to add regular gasoline to the tank when you can to further dilute the ethanol while 85 ethanol is a bit high use for normal gasoline cars a more conservative ratio can help stretch gasoline supplies and reduce our reliance on fossil fuels in fact that's why at most regular gas stations these days you might notice a pump with a sticker that says something like may contain up to 10 ethanol or a blue pump with a blend of 25 30 or 35 ethanol these fuels work just fine in most modern cars built after 2002 and that's why we see a bit of ethanol in virtually all gasoline nowadays you should check your owner's manual or speak to one of the service advisors if you're unsure if you're circling around the block to find the cheapest gas station it can get very irritating but did you know that there are apps you can download on your smartphone to help you find the cheapest gas stations near you apps like gas buddy waze and gas guru they say sometimes it can end up saving you up to 30 cents a gallon the reason is apps like these constantly update gas prices in real time you can even get notifications on your phone for deals with rising gas pricing most people are starting to use these types of apps in fact on march 7th there was so much user traffic on gas buddy that it was inaccessible on and off that entire day and another app gas guru gives you information straight from the oil price information service it even lets you search by fuel grade and amenities too now if you're on the road and don't care to download any of these apps here's a good rule of thumb avoid gas stations just off the highway exit or in the middle of a major city gas stations located in those areas generally have higher prices it's also a great idea to consider reward cars for example gas buddy offers a free gas card that can save you up to 25 cents a gallon at most gas stations across the country retailers like walmart kroger safeway costco bj's and sam's clubs also have competitive fuel rewards programs and many gas stations often offer discount for cash payments as opposed to credit card payments wondering what day of the week is best for pump and gas turns out it's monday gas buddy did a study where they discovered that mondays usually have the cheapest prices in most u.s states on the other hand wednesdays thursdays and saturdays generally mean higher prices there are other practical tips to help you save money on gas let's start with the easiest one first off it's best to check for peak traffic hours in your area before you set off on the road the heavier the traffic the longer you'll sit in it on the other hand if you spend less time idling in traffic you'll waste less gas too speaking of idling just don't do it at least try not to if you need to wait for more than one minute it's best to turn off your engine if it's safe to newer vehicles now have engines that automatically stop when the car idles for a certain period of time did you know that idling can cost you up to half a gallon of gas per hour waiting in a red light takes 45 to 120 seconds starting your car only acquires about 10 seconds of gas even if it's cold outside don't idle your car for long periods of time to try to warm up your car all it does is waste fuel now if you're one of those drivers who loves to speed from point a to point b i've got some advice for you just slow down slowing down and driving at the speed limit reduces aerodynamic drag the lower the drag the higher the fuel economy fuel economy starts to drop significantly when you speed above 50 miles per hour also when you accelerate gradually ease up on the brake when your brakes suddenly or accelerate quickly car eats up more gas that's why coasting downhill through a red light is recommended cruise control is also a great option to help you maintain the best speed and save fuel when the road is flat here's one that might be new to you don't wait until spring cleaning to clean out your car carrying extra cargo in your car adds weight to the vehicle i'm talking about things like sand or salt bags for removing ice the more weight your car has the more gas it needs to get moving losing an extra 100 pounds from your vehicle can improve your gas mileage by one percent that's based on the percentage of extra weight relative to your vehicle's weight also things like cargo containers or bike racks on roof increase the vehicle's wind resistance this means that the engine has to work harder to maintain its speed in fact this aerodynamic drag can increase fuel consumption by up to a whopping 20 percent on the highway so if you don't use those features regularly just remove them for your daily commute also make sure your tires are properly inflated low tire pressure reduces fuel efficiency not only that but it also wears your tires out quickly tires lose pressure over time you can't avoid it that's why you should check the pressure at least once a month now if you ever see your car's check engine light come on take it to a repair shop as soon as possible or get your code reader if you own one and see what it is engine issues can cause you to burn up to 25 more fuel than you normally should on the other hand if you regularly service your car then you're helping your engine run at its best in fact properly maintaining your car might cost you in the short term but it will also improve your gas mods by some four percent not to mention extend the overall performance and lifespan of your engine and fixing a serious maintenance problem like a faulty oxygen sensor can improve your mileage by up to 40 percent if you want to know how often you should get a tune-up just check your car's manual it depends on your car's age and model for newer cars an inspection is generally recommended every twenty to thirty thousand miles also check the fuel octane that's appropriate for your vehicle some people believe the myth that putting premium high octane fuel will help their cars be more fuel efficient but that isn't necessarily true many cars are actually designed to use regular low octane fuel so adding higher octane fuel won't help your engine but only hurt your wallet one last tip for the day this one's about air conditioning since gas prices are expected to remain high through the summer some people believe that in hot weather you should use ac the reasoning is that modern air conditionings create less drags than a few to drive with the windows rolled down but there are others that say driving with your windows rolled down will save you fuel here's the thing the correct answer isn't absolutely either of the two studies show it's best to drive with the windows rolled down if you're driving at speeds less than 40 miles an hour but if you're driving faster than that then it's more fuel efficient to drive with the ac turned on and the windows rolled up and of course if you have flexibility the best is to drive during cooler parts of the day if you can that's because cooler denser air can boost power and mileage and your air conditioner won't have to turn itself on as often when it's not 100 degrees outside let's talk about what's happening right now on march 6 the average price of gas in the u.s broke four dollars a gallon this was the first time it happened in almost 14 years we're talking an increase of nearly 50 percent from a year ago the next day the national average was 4.10 cents a gallon breaking an all-time record high and that's not even taking inflation into account the following day it hit 4.17 cents that was an increase of about 55 cents since the week prior nowadays filling up a small car can cost you 60 bucks and a crossover can easily break 80 no wonder people are anxious about the future and some experts expect this upward trend to continue in the months to come crude is petroleum gas in its national state before it gets refined even before the u.s ban many western energy companies moved to cut ties with russian limit imports i'm talking about companies like exxon mobil and bp shell purchased the shipment of russian oil at the beginning of march and then they apologized two days later after international criticism of their actions then they promised to stop any further purchases of russian energy supplies preliminary data from the u.s energy department showed more interesting findings they found that imports of russian crude oil dropped down to zero in the last week of february so how much does the u.s rely on russia for oil anyway well russia accounts for almost 10 percent of the world's oil supply but you might be surprised to learn that russia isn't the world's largest oil producer and it isn't saudi arabia either believe it or not actually it's the united states but the us is also the world's biggest oil consumer we can't meet the demand in our country only with u.s sourced crude oil we need other countries to help too and one of them has been russia at least it was last year in 2021 the u.s imported 245 million barrels of oil from russia that's about 8 of all u.s oil imports that's less than what the us gets from canada or mexico but more than we imported from saudi arabia biden explained it would be understandable that prices would rise but he did caution the u.s energy industry against excessive price increases and exploitation of consumers even so that doesn't mean the industry will listen now that's not to say that the u.s economy can't fully handle higher gas prices it can but it will bring some challenges there's just no way around that remember gas prices were soaring even before the ban officially started and the major reason for that was because of the looming possibility of a u.s ban on russian oil imports only now it's a reality even experts said they'd never seen this type of situation before it's with this level of uncertainty in 2008 gas prices broke a record when it averaged four dollars and 10 cents a gallon when you take inflation into account that comes to about 5.24 cents per gallon soaring prices stuck around for weeks but here's the difference the projections for high gas prices right now is at this time it'll stick around for months just how high are we talking about as of the making of this video experts are saying that we're headed towards national average of four dollars and fifty cents a gallon some experts believe that this ban on russian oil imports can even shoot an average over five dollars in february oil was selling for about ninety dollars a barrel now their price is 130 a barrel energy analysts have warned that prices could rise as high as 160 and 200 a barrel in the near future this is only if sanctions continue and we continue to boycott russian crude oil because of the u.s ban on russian or gas and oil imports the u.s is considering other sources for example senior u.s officials traveled to venezuela recently to discuss the possibility of easing up oil sanctions over there time will tell as to whether the alternative sources will work or not for now the best we can do is save up on gas in any way we can and buckle up for rising prices in the months to come but now you tell me how high do you think gas prices will be whether it be a tipping point or threshold where you'll stop driving and take public transportation instead or maybe consider getting an electric vehicle do you have any other tips or tricks to save at the pump please share your experience by commenting below if you like this video please like and subscribe thanks for your support

Channel: Scotty Kilmer

Views: 1,162,671

Keywords: auto, auto repair, car, car diy, car repair, cars, diy, how to, mechanic, repair, scotty kilmer, car review, 87 octane, 91 octane, 93 octane, buying gas, gas myth, gasoline, gasoline myths, myth busted, premium gas, premium gas myth, premium gasoline, premium vs regular, premium vs regular fuel, premium vs regular gas, regular gas, regular gasoline, type of gas for cars, types of gasoline, what type of gas to buy, what type of gas to use, gasoline price, gasoline prices

Id: 2aOZ0PC4kv0

Length: 26min 37sec (1597 seconds)

Published: Sat May 28 2022