The cost of crude oil per barrel fell back below $50 the moment that Donald Trump announced that the USA would withdraw from the Paris accord on climate change. The move has prompted speculation that the US will ramp up both coal and shale oil production further, leading to higher carbon emissions and lower fuel prices at the pumps.
In the short term, the fall in the cost of oil should translate to a further 2p a litre reduction in the cost of fuel within two weeks, a £1 saving per fill up. While this is a timely boost to those on low incomes, the long-term environmental cost of losing the US from the climate change agreement is very harmful, experts believe we’re witnessing the unravelling of 25 years of environmental work in one US presidential administration over the next 5 years.
In case you missed it, here is Trump’s full withdrawal video:
Trump and Big Oil
As speculated several months ago, this is part of Trump’s ongoing vision to support the American Midwest, decimated by low investment in job creation and the loss of jobs from traditional gas, oil and coal production industries, closed during the Obama administration to meet Paris Agreement targets.
The harsh truth is that this decision isn’t being done to support jobs, it’s to support the coal, oil and gas industry of America. They were major backers of the Trump presidential campaign and are now looking to get their money back by encouraging the US government to lift all the restrictions they’ve been operating under for a decade.
As well as lifting domestic restrictions on coal, oil and gas production, there is a global power play at work here by what Trump is doing. The USA is 3rd in the list of global oil producers behind Saudi Arabia and Russia. Saudi Arabia has effective control of 65% of the world’s oil supply under the OPEC group of 14 member states. Almost 18 months ago, OPEC and Russia deliberately stifled the growth of American shale oil producers by producing high volumes of oil, forcing the global cost of oil down and in turn hitting the incomes of hundreds of low volume US producers.
What we are seeing now is the fightback of US gas and oil interests supported by the US government against OPEC and Russia’s aims to limit supply and keep the oil price higher. This can only mean in the short term global supplies of oil will be greater than demand, so we could see fuel prices fall a little further but not likely to reach the £1 a litre mark of Dec 2015.
What happens now?
However, while these price declines are good news, one cannot avoid feeling a sense of despair about the Paris Agreement and what will happen now that the world’s biggest economy has decided to withdraw from a plan to tackle climate change.
This has similarities to the UK government’s attitude to tackling pollution in our cities. If the leaders of the world are not serious about tackling these issues head on, then what chance do we, or future generations have coping with climate change and pollution in the future?
Is it worth having lower cost fuel if it means the environment is worse off? If the US doesn’t follow climate change rules, then why should the UK government meet pollution targets? Let us know in the comments below.
Image Credit – YouTube
The UK (not just Scotland, and I’m a born Scot of Scottish parentage, living in Scotland) is producing oil out of the North sea and other places,WHY are we not “self sufficient” in pricing our own fuel costs??, Fuel should be priced by the producing companies and not governed by politicians who are #talkinggobthingies# and not industrialists.Government needs to take heed of the proof that was shown the last time vat was lowered and actually they collected MORE vat in that period till vat was again raised on fuel.
10 out of 10 for your comments
we’re damned if we do , damned if we don’t
really great site and really helpful to us disabled drivers, thank you.
This article is labelled as a “News entry dated 07th Jun 2017”. In fact, the article is instead written very much as an opinion piece, with very little “news” content. All good publications, whether in print or online, supply the author’s name, particularly when opinions are expressed. So could I request that the author’s name is stated with every article of this type on this website. Otherwise, anonymous text such as this carries very little weight.
President Trump seems to be the only world leader that is not afraid to join the big scam on Climate Change.
He does not believe in the rubbish most people are following like sheep.
As he says “it is just weather” which has been changing naturally for thousands of years.
The fact is, all the plants in the world can only survive with Co2 in the Atmosphere.
Without Co2 all the plants will die.
One natural volcanic eruption will put Polution into the Air in one days than thousands of cars so are we going to shut down volcanoes?n
The truth is, it is just another big scam to bring in more taxes and extra money for airlines to charge us a carbon tax.
So greenies who are still bleeding about destroying the planet are hugging the wrong tree and with the CO2 the planet will have no trees to hug.
Wow, you really bothered to educate yourself in this matter, didn’t you? What did you read to inform your opinion? The Daily Mail?
The UK (not just Scotland, and I’m a born Scot of Scottish parentage, living in Scotland) is producing oil out of the North sea and other places,WHY are we not “self sufficient” in pricing our own fuel costs??, Fuel should be priced by the producing companies and not governed by politicians who are #talkinggobthingies# and not industrialists.Government needs to take heed of the proof that was shown the last time vat was lowered and actually they collected MORE vat in that period till vat was again raised on fuel.
10 out of 10 for your comments
we’re damned if we do , damned if we don’t
really great site and really helpful to us disabled drivers, thank you.
This article is labelled as a “News entry dated 07th Jun 2017”. In fact, the article is instead written very much as an opinion piece, with very little “news” content. All good publications, whether in print or online, supply the author’s name, particularly when opinions are expressed. So could I request that the author’s name is stated with every article of this type on this website. Otherwise, anonymous text such as this carries very little weight.
President Trump seems to be the only world leader that is not afraid to join the big scam on Climate Change.
He does not believe in the rubbish most people are following like sheep.
As he says “it is just weather” which has been changing naturally for thousands of years.
The fact is, all the plants in the world can only survive with Co2 in the Atmosphere.
Without Co2 all the plants will die.
One natural volcanic eruption will put Polution into the Air in one days than thousands of cars so are we going to shut down volcanoes?n
The truth is, it is just another big scam to bring in more taxes and extra money for airlines to charge us a carbon tax.
So greenies who are still bleeding about destroying the planet are hugging the wrong tree and with the CO2 the planet will have no trees to hug.
Wow, you really bothered to educate yourself in this matter, didn’t you? What did you read to inform your opinion? The Daily Mail?