Why Elon Musk Is Suddenly Supporting The Fossil Fuels Industry

Elon Musk admitted that fossil fuels still have their place in this world.

By Joseph Farago | Published

Many believe that cleaner energy companies would be in opposition to the fossil fuel industry. But Elon Musk is here to break that misconception. Musk has recently supported oil and gas companies in a strange turn of events. Some think Musk’s endorsement might have to do with stopping electricity prices from skyrocketing as more EV manufacturers emerge.

According to Peter Garnry, the head of equity strategy at Saxo Bank, electricity prices are rising as EVs become more popular. Car manufacturers will likely experience new expenses for EV production over the next 12 months. Garnry stated that though the electric-vehicle frontier is expanding and finding new solutions to prior problems, escalating costs coupled with current demand may hinder the EV industry. This may be a reason for Elon Musk’s perplexing statements at ONS 2022, an energy conference in Norway.

At ONS, Elon Musk made comments about his appreciation of support for gas and oil companies. Though Musk has pioneered clean-energy vehicles and popularized the luxuriousness and efficiency of electric cars, he stated at the conference that society would collapse if fossil fuels were no longer. Musk continued by saying he wouldn’t “demonize oil and gas,” recognizing its crucial function in America and the world. For someone who is trying to shift reliance on oil to increase revenue for his EV business, it seems hypocritical that Musk would take this stance. Then again, the Tesla CEO is known for speaking out of pocket, back-tracking, or Tweeting nonsensical statements.

Elon Musk’s remarks at ONS exceeded the recognition of oil and gas as crucial elements. Musk stated that not only do we rely on fossil files but that we “need more oil and gas” to be produced worldwide. In the same speech, he talked about how important it is to invest in renewable energy like wind, solar, and geothermal. He also described himself as a supporter of nuclear energy, urging people to keep investing in nuclear power plants.

nuclear reactor

Elon Musk’s comments at ONS come at a particularly sensitive time for Europe and its energy supply. Certain European countries rely on their energy economies, which have been affected heavily by the soaring costs of fossil fuels. As gas and oil have gone up in value, so has electricity. Even though there’s a new push to produce more electric vehicles, electricity’s skyrocketing value has made charging EVs even more pricy. Not adequately incentivizing Europeans to switch to clean-energy products and machinery may halt the continent’s progression in reducing carbon emissions and fossil fuel usage.

In the UK, conversations have erupted over the exponential increase in electricity in the country. Less than a month ago, Ofgem, the government’s electricity regulator, hiked up electrical prices significantly, causing public outcry and condemnation. The country’s recent prime minister Liz Truss is set to announce a cost-of-living support package to reconcile with rising fossil fuel and electricity prices. Still, many UK citizens are overburdened by energy costs, which should be alleviated by switching to greener energy sources.

Though fossil fuel costs for gasoline and diesel have dropped slightly in the UK, people need a government package to mitigate the rising costs of their energy bills.