The Russian-Ukrainian war has disrupted the supply of oil and other fuels, and the price of natural gas has therefore risen. Tesla CEO Elon Musk has admitted that more fossil fuel production is needed now, even if the speech may be detrimental to its electric car company Tesla .
Musk said on Twitter on Saturday (5th), “I hate to say this, but we need to increase oil and gas production immediately, and in extraordinary times need extraordinary measures.” He argues that the adoption of renewable energy for electric vehicles is not fast enough to protect consumers from higher prices in the short term.
Musk admitted that obviously this will have a negative impact on Tesla, but the sustainable energy plan simply cannot immediately make up for the shortfall in Russian oil and gas.
People familiar with the matter alleged that Musk’s tweet came as the White House was evaluating a ban on imports of Russian crude, an idea previously rejected by U.S. President Joe Biden and calls by U.S. oil industry leaders for higher production.
International oil prices recorded their largest weekly gain in history on Friday (4th), with commodities such as crops, metals and natural gas soaring. U.S. West Texas crude oil April futures surged 7.4% to $115.68 a barrel, a new high since 2008; London Brent crude oil May futures rose 6.9% to $118.11 a barrel, both posting their biggest weekly gain since mid-2020.