The Trump administration has been working to cut back on regulations in order to help the oil industry. Recently, they proposed a regulation that would reduce mileage requirements for cars and trucks. If this regulation is passed, it could have a significant impact on the oil industry.
What are the Car Mileage Regulations?
The United States Environmental Protection Agency (EPA) has proposed a rule that would reduce the amount of fuel a car can use per mile traveled. The proposal, which is known as the “Carbon Dioxide Emissions from Vehicles Rule” or the “Clean Air Act Amendment for Reducing Fuel Consumption and Greenhouse Gas Emissions from Motor Vehicles,” was published in the Federal Register on Thursday.
The EPA claims that reducing vehicle mileage will help to reduce greenhouse gas emissions by about 18 percent by 2030. The rule would also save Americans about $2 billion each year in fuel costs.
Critics of the proposal argue that it will increase prices and reduce consumer choice. There are also concerns that the EPA’s estimate of how much greenhouse gas emissions will be reduced is inaccurate.
The Argument for and Against Cutting Regulations
The oil industry has long argued that slashing regulations on car mileage would help the economy by encouraging people to drive more, and boost production. But some experts say this is a myth. They argue that the oil industry’s reliance on heavy vehicles and trucks means that any cuts to mileage requirements would do little to reduce gasoline consumption. In fact, they could even have the opposite effect.
If carmakers were allowed to make even larger vehicles, consumers might buy more cars, and demand for oil would increase even further. Meanwhile, automakers who decided not to build big SUVs could face a competitive disadvantage, since their smaller vehicles would be unable to compete with the gas guzzlers on the market.
Supporters of cutting regulations argue that this would allow for increased production of lighter vehicles that use less fuel. However, many experts say it’s unlikely that this will happen in the near future. In addition, these new vehicles may not be as efficient as those currently on the market, meaning they will require even more gasoline to operate.
There are pros and cons to either side of this argument- but it seems clear that changing regulations around vehicle mileage is not going to solve our energy crisis any
What would happen if we cut regulations?
If we cut regulations, the oil industry would receive a significant boost. The reduction in restrictions on oil production would increase supply, leading to an increase in prices. This would be good news for the oil companies, as it would lead to an increase in profits. However, this rise in prices would not be shared by everyone.
Low-income households who rely on gasoline as their primary form of transportation would see their budgets go down as a result of higher gas prices. Additionally, small businesses that use a lot of gasoline to run their operations could find themselves struggling to stay afloat. In the long run, this reduction in regulations could have negative impacts on the economy as a whole.
Conclusion
There is no one-size-fits-all answer to this question, as the oil industry will be different in each country. However, some economists have argued that cutting car mileage regulations could help the oil industry by making it more difficult for people to buy electric or hybrid cars. This would mean that people would still need to use gas vehicles for things like long hauls and transporting goods, which would then go towards helping the oil industry rather than hurting it.