Elon Musk vs The World In the end The Truth will Prevail

26 Jul 2022

The world is currently run by petro $. There is a direct hit to it from @tesla and @elonmusk. How?

1. First is to understand countries which are a part of OPEC. The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely

1 Islamic Republic of Iran
2 Iraq
3 Kuwait
4 Saudi Arabia
5 Venezuela
These countries were later joined by
6 Qatar (1961),
7 Indonesia (1962),
8 Libya (1962),
9 United Arab Emirates (1967),
10 Algeria (1969),
11 Nigeria (1971),
12 Ecuador (1973),
13 Gabon (1975),
14 Angola (2007),
15 Equatorial Guinea (2017)
16 Congo (2018)
17 Ecuador

-Ecuador withdrew its membership of OPEC effective 1 January 2020.
-Indonesia suspended its membership of OPEC on 30 November 2016.
-Gabon terminated its membership in January 1995. However, it rejoined the Organization in July 2016.
-Qatar terminated its membership on 1 January 2019
-This means that, currently, the Organization has a total of 13 Member Countries.
Source: https://www.opec.org/opec_web/en/about_us/25.htm

So for the sale of oil, these countries get US $. Some of these countries are either ruled by Kings like Qatar, Saudi Arabia Kuwait, some are corrupt and economically failed countries like Venezuela, Nigeria, Angola, Congo and some are just there without any controversies highlighted on the global level but the oil money is definitely going in the wrong hands and not to the people of the country. They suppress any news coming out from there on a global level.

Majority of the oil production is controlled by the Islamic countries mostly Saudi Arabia, Qatar, Kuwait Iran and Iraq. There are sanctions by US on Iran and Iraq. Who benefits the most? Saudi Arabia is the largest beneficiary among all at this stage. Iran and Iraq are biggest trade partners as both governments operate on a Shi'ite system of governance. While Saudi Arabia and Iran - two powerful neighbors - are locked in a fierce struggle for regional dominance. The decades-old feud between them is exacerbated by religious differences. So there are groups who wants to control the world oil prices but mostly the controlling power of these groups is none other than US because it provides $ in exchange for the oil. $ is a reserve currency and is used, saved and transacted all over the world. $ equivalence was gold once upon a time, however The US government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard in order to address the country's inflation problem and to discourage foreign governments from redeeming more and more dollars for gold.

Petrodollars are not a currency; they're simply U.S. dollars that have been exchanged for crude oil exports. The term rose to economic and political prominence in the mid-1970s amid growing interdependence between the U.S. and crude oil exporters.

2. Where is Russia in all of this? Russia provides oil/natural gas to Europe.

Image Courtesy: https://www.bbc.com/news/58888451

Image Courtesy: https://www.bbc.com/news/58888451

3. How can all this be replaced? The mess that was created by the United States to control inflation in 1971 and removing the gold standard with US$ so that it can run the economy with the roads infrastructure with billions of cars running on them with the gasoline provided by these OPEC countries.

Now, if one man aka ELON MUSK comes in and says this was all the drama caused by the US government to make it’s currency dominant on a global level and we don’t need oil, natural gas and other pollution creating, climate change causing fossil fuels and the energy is available from the sun and is sustainable, non-polluting and from recyclable natural resources like nickel, cobalt, lithium, copper by creating batteries and then charging them again from the SUN and nuclear power stations, then what will be the reaction of the US Government, the oil cartel, the Russians and the other oil/gas suppliers?

They will all want this guy to be punished and potentially be harmed because he is disrupting the entire ecosystem that was created with petro dollars and were very happy with everything so far. The poor remained poor, the rich became richer including people and countries (by printing more dollars) but now things are about to change as oil will not be used anymore going forward, natural gas will be replaced with power from the sun stored in lithium ion batteries via solar panels, wind and hydro power

Also disruption is taking place on a level and the people affected are:
-    First and foremost these oil producing countries
-    small and big business that deal in ICE manufacturing like the parts suppliers,
-    the car dealers,
-    the automobile insurance companies,
-    the automobile repair shops where you pay $50-$70 every 3-4 months for engine oil change and 100’s of dollars for parts in the ICE eco-system. The revenue of all the people working in the ICE eco-system would collapse
-    the gas stations where you fill your tank with petrol or diesel
-    the logistics providers who help move the gasoline products from ships to trucks to container and vessels providers
-    the oil extractor companies and oil rig companies involved
-    and may be many others in the gasoline supply chain (image below)

Image courtesy: https://www.eia.gov/todayinenergy/detail.php?id=9811

BUT what are the benefits of bringing on the Electric Vehicles to the world!
One of the most important benefits is well expressed in this image below provided by 2018 Infosys Analysis of Electric Vehicles. It is called the circular economy. https://www.infosys.com/industries/automotive/white-papers/documents/disruptor-automotive-ecosystem.pdf

Image Courtesy: https://www.infosys.com/industries/automotive/white-papers/documents/disruptor-automotive-ecosystem.pdf

On top of it there will be many innovations like FSD, Speed, Ease of use, home charging etc, however the most important thing is to understand how it will impact people and the environment.

1. People will not pay much for ICE components when it goes bad. In fact, there are about 20 moving parts in an electric engine, compared to nearly 2,000 in ICE vehicles!
2. Cost of charging an EV will be much cheaper than the cost of refueling with gas (see below chart from an article from CNBC)

Image Courtesy: https://www.cnbc.com/2022/03/19/cost-of-charging-ev-vs-gas-prices.html

3. No engine oil change cost forever! Think about it, how amazing it will be to not schedule an appointment with the car dealer or an automobile repair shop for engine oil changes or to get rid of the oil change blinking light on your car dashboard!
4. Solution to climate change. The weather and the lungs will be thankful! Lesser natural calamities.
5. Sustainability, recycling and re-use without affecting the environment. When you open your car window on a heavy traffic highway, you won’t smell gasoline and the fumes that affect your lungs!
6. Sun, wind, water carefully managed nuclear power plants and non-harmful basic chemical reaction in batteries will provide energy. In fact, there are studies that prove that you can power the entire US from the sun by installing solar panels, wind mills and hydro power stations. Studies claim that we do not need natural gas or gasoline or any other fossil fuels to turn the lights on!

Balancing Inflation! The FED is already working to control inflation by increasing the interest rates. This is a cycle that happens every few years. But this time it’s different! As the cost of travel will decrease over time due to less use of ICE cars, government spending on gasoline will decrease. There will be less amount spent on gas in the coming years and hence will balance out for the cost of other commodities or may be lower the cost of living once oil $ stays with the government instead of spending on importing/producing oil. People always create noise when $ expense from their pockets is increased due to high cost of gasoline, but they never make the same noise when they will save so much on travel, gas and insurance, car parts, engine oil change, etc once they have the EVs.

That’s a separate article on how these OPEC countries and Russia will make money once we stop using or reduce the use of natural gas and oil. But as for now, they are trying their best to shun Elon Musk and the EVs. US Government is in the middle of everything because it started this shit by paying $ for oil and now it will be responsible for further fixing the issue. Moreover the US government whether democratic or republican; is indebted to the Union leaders as it might have provided both the parties with loads of money during and before the election. But on a higher level, if the United States government takes responsibility and does things which are ethically important, it will survive. It will definitely hurt the union leaders, the oil companies and people involved in the ICE world, but it will reclaim its spot as a global leader by supporting EVs and Elon Musk, because as there is no way another Apple can come up in the smart phone world anytime soon, or another search engine like Google can come up in the internet world, there is no way another Tesla can take a leaders position in the EV world!

Last but not the least; it’s not the end of the world for the oil producing countries:

It’s not that the oil export and import will be completely shut once EVs come into picture. The petroleum products include gasoline, distillates such as diesel fuel and heating oil, jet fuel, petrochemical feedstock, waxes, lubricating oils, and asphalt. Over 6,000 items are made from petroleum waste by-products, including: fertilizer, flooring (floor covering), perfume, insecticide, petroleum jelly, soap, vitamins and some essential amino acids. Oil can be used to make many products in a way that is more sustainable than use as a fuel, which creates pollution. The final products produced from the crude oil by products can have a higher value to prevent loss in revenue from low output of producing oil. So, it is definitely not the end of the world for the OPEC countries. They can still make money by increasing the prices of its by-products and lowering the output to a sustainable level.

Image Courtesy: https://www.linkedin.com/pulse/10-energy-resources-serie-killing-last-barrel-oil-al-jaber/

Other ways to generate diversified revenue instead of from gasoline is to enter other markets like how Saudi Arabia and United Arab Emirates have already started generating revenue from other sources like tourism and real estate. It will be a great world, if the right thing is done and United States should play an important role in this as a technology and nuclear superpower! Being a leader, it has to dictate terms either in a friendly manner or by use of diplomatic solutions. It’s time to fix things, not make it worse!

But negating the affect of EVs and Elon Musk who is a brilliant human being is absolutely unnecessary and sick. It has to mend it ways to do the right thing then to be bought by corrupt union leaders, because the world is watching. China is taking notes on everything the US is doing. India is taking advantage by buying oil from Russia in Rubbles and Iran in Rupees. The eastern world is already boycotting the $ and it will lead of grave consequences if not handled well. The US government will be responsible for its own ill-actions. Let the results be of a positive effect as a world leader and super power instead of all the non-oil producing countries and cold war countries going against it. The people of US are aware and will act accordingly in a democratic 2 party country. It might take time, but ultimately it will happen. The world leaders are watching. The point is the US government should control its actions rather than just throwing away the control and creating conflict by doing the wrong things. The truth should and will prevail in the end!


About the Author: Rajiv Parikh is a tech enthusiast, an engineer at heart and an entrepreneur. He is a Tesla Bull and owns Tesla stock. Irrespective of owning the tesla stock, he will always support the right thing. The world is being run by oil majors and there is a lot of inequality all over the world and this inequal gap needs to be filled. The poor are struggling to make ends meet and the rich are loaded with cash. Hopefully, removing the oil dependency will bring the world on a level playing field and then the countries innovation will bring in a new standard than what it is currently.  https://twitter.com/rajivpparikh

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