The Petroleum Bomb

This article highlights the dependence on petroleum and its products for the major share of the world’s transportation fuel create special dangers in our time. These dangers are all driven by rigidities and pot entail vulnerabilities that have become serious problems because of the geopolitical realities of the early 21st century. Those who reason about these issues solely on the basis of abstract economic models that are designed to ignore such geopolitical realities will find much to disagree with in what follows. Although such models have utility in assessing the importance of more or less purely economic factors in the long run. The attractiveness to the consumer of being able to use electricity from overnight charging for a substantial share of the day’s driving is stunning. The average residential price of electricity in the United States is about 8.5 cents per kilowatt-hour.