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Elon Musk Thinks We Need to Increase Oil and Gas Output ‘Immediately’

Just one week after Russia began its invasion of Ukraine, Elon Musk declares that the U.S. needs to increase oil and gas output immediately. The revelation from the Tesla CEO comes just after the Americans began to see a drastic increase in gas prices. 

While sharing his thoughts about the current economic issue, Elon Musk declared on Twitter, “Hate to say it, but we need to increase oil [and] gas output immediately. Extraordinary times demand extraordinary measures.”

What You Need To Know

  • Gas prices have drastically increased since the Russian military forces began invading Ukraine.
  • The average price of gas is now $4 per gallon
  • Numerous gas and oil companies have cut ties with Russia following the invasion.
  • Elon Musk admits that increasing output negatively impacts Tesla.

Although Stating An Increase in Oil and Gas Output is Needed, Elon Musk Admits that the Move Does Impact Tesla

Although he believes the increase in output is needed, Elon Musk states that it will negatively impact his electric car brand, Tesla. “Obviously, this would negatively affect Tesla. But sustainable energy solutions simply cannot react instantaneously to make up for Russian oil and gas exports.”

According to Market Watch, Elon Musk’s comments come just as U.S. benchmark crude oil on the New York Mercantile Exchanged reportedly settled at the highest values since 2008. April West Texas Intermediate crude futures CLJ22, +6.81% CL.1, +6.81% 7.4%, to settle at $115.68 a barrel. This is the highest finish since September 2008. The prices based on the front-month contract increased by $24.09 or 26.3%. 

The media outlet also notes that Russia is a major producer of crude and natural gas. Since the invasion started, both republicans and democrats have spoken up about not relying on Russia for oil and gas any longer. 

President Biden Announces the Release of 60 Million Barrels of Oil From Worldwide Reserves in Order to Reduce Gas Prices 

Meanwhile, President Biden announced 30 countries have teamed up to release 60 million barrels of oil from reserves around the world.

MassLive reports that the U.S. is now leading the effort with the release of 30 million from the National Strategic Petroleum Reserve. President Biden shared details about the plan in the 2022 State of the Union address. “And we stand ready to do more if necessary. Unified with our allies. These steps will help blunt gas prices here at home. And I know the news about what’s happening can seem alarming. But I want you to know that we are going to be okay.”

Along with announcing plans to release the barrels, President Biden affirmed that the U.S. supports the Ukrainian people during the Russian invasion. “We the United States of America stand with the Ukrainian people. Throughout our history, we’ve learned this lesson. When dictators do not pay a price for their aggression, they cause more chaos. They keep moving. And the cost and the threats to America and the keep rising.”