Will you please explain the oil connection to humanity in the Ukraine to me?

I think it’s a comment on US sanctions on Russia for attacking Ukraine (which includes banning imports of oil from Russia).

I believe it’s in response to an asinine GOP anti-Biden argument that banning oil imports from Russia means higher gas prices in the US. I overheard such a comment the other day from a vegetable-department manager who was saying, “that’s how he/they get us!” – meaning he takes it as an evil Biden/Democrat plan to undermine GOP gas-purchasers through higher gas prices. (Which is an insane idea, but one that apparently works for someone still follows the GOP.)

But people are framing it in the context that it helps the people of Ukraine in some tangible way.

Well it impacts Russia’s finance & industry a bit, which adds to the costs of their misadventures in Ukraine. Compared to the supposed alternative of not banning Russian oil imports, it is significant, and Russian leaders/etc may tend to care more about that than if we could get away will killing some more Russian troops.

The argument is basically this: banning oil imports from Russia increases gas prices at home, but it also increases the stress of war on Russia’s economy; the more we increase the stress of war on Russia’s economy, the sooner the invasion ends; the sooner the invasion ends, the fewer children (and adults) get shot and killed. Maybe you don’t agree with the argument, but I hope you can see the tangible benefit in not being shot and killed.

So it helps the refugees in a round about way.

McDonalds temprarily closed all their stores in Russia.

In my opinion, we can feel bad for Ukraine and pay more for gas and still complain, and it’s all ok. It’s not black and white. I feel bad for the Ukrainians and yet I am very grateful that I am now retired and don’t have a 80 mile round trip commute. It’s not an “either/or.”

Russia!

I’m willing to pay more for gas if that is the result of not importing oil and gas from Russia, to show solidarity with Ukraine, but I’d rather lower the US consumption of oil and gas so the price doesn’t need to go up so much.

I can afford higher prices (not that I want to pay it) but people in lower income brackets will really feel the financial crunch. I’d rather keep prices down for everyone, that’s why I think we should do simple things that reduce demand.

Biden said we can increase oil production, but that’s up to the private companies to do it if I understood correctly. It is not his government slowing production in any way, and hasn’t been.

Crude oil prices shot up due to these actions so gasoline produces immediately upped the price for gas. It’s an international thing, so not something that Biden can actually control.

During the various oil shocks and price spikes the Department of Energy and others tracked gasoline prices vs usage all over the US. It turns out that depending upon the community usage goes down 1% for every 10% to 15% of price increase. For example, imagine you were paying $3.29 per gallon and you used 20 gallons per week, If the price suddenly spiked up 12% to $3.69 per gallon, you would conserve a little and only use about 19.8 gallons per week. For the most part you driving habits would not change. You’d skip only one small trip. Conversely, if usage drops that same 1% the price will fall by that same 10–15%. Or if production changes 1% the price will move 12%. This ratio 12:1 varies depending up the region. Some places have no choice. Some have many other options.
Russia supplied about 6% of our oil, so you can expect to see 6% x 12:1 = 72% price increase if we keep our driving habits the same. Gas at $3.29 per gallon will be $5.75 per gallon – if we don’t reduce our consumption.
We all could help pull the price of oil and gas down by conserving. We did it before during the first part of the Covid shut down. We used about ⅔ of our normal usage. That is why gas prices went down to $2.09.
We can support the country, and Ukraine, by conserving. Even a little helps.

@LuckyGuy Great info! I’m going to use it in another Q and credit you.

@JLeslie Feel free. It is kind of fun to watch how perfectly the numbers match. Things settle out after a while and they find a new normal eventually. But, for short term shocks, you can figure on the 10–15:1 ratio. It is pure economics.

That is why even a small percent of renewable energy has a big effect on fuel prices.

(It is also a bit depressing to see how small an effect large price increases have on our habits. It takes a huge change to convince us to conserve or seek alternatives.)

@LuckyGuy what would be interesting is to figure profit at the lower $ and higher consumption compared to the higher $ and lower consumption. My guess is the companies are keenly aware of those numbers. If not profit then total revenue at minimum.

Also, if prices go up a lot I have a feeling the 12:1 ratio eventually changes.