Probably it’s the additional costs of having to ship some of the oil from further away and having to exploit more costly oil reserves (such as lower yield fracking oil reserves in the US).
Higher oil prices make alternative oil sources (fracking, tar sands) viable, but they weren’t viable before with lower oil prices exactly because they’re more costly.
Sure there is. My electric company is primarily remewables and somehow the rates just increased again! After doing the same thing for the last several years in a row! My electric bill is now nearly double what it was 6-7 years ago.
What they do is say “due to increased demand” (which doesn’t exist unless you count overproduction that goes to other places).
Lying is just good business, especially of it’s only a lie technically!
The classic oil price goes up, gas price shoots up the next day and slowly floats down over weeks gives in general a higher margin and that’s what they’re going for.
I pay for 100% renewable generation. Sometimes the supplier makes so much electricity that the price occasionally goes negative. The consumer will never see the benefits of that while the coal plant subsidies exist. 100% solar is priced the same as coal, since that is the competitor/alternative to get electricity (free market baby! What is a utility but a legalized monopoly anyway?), plus a subsidy to keep the coal plant in operation. Without the need to pay the subsidy, the pricing factors change, green energy is now competing against each other, instead of carrying the load of outdated, inefficient and toxic coal plants.
Yeah, they used to leverage the barriers to entry into the generation market (before solar and wind, when only those with lots of $$$ could set up power generation facilities because the most efficient ones were big and very expensive ) to extract more money from customers, now they leverage the barriers to entry into the distribution market as well as the dominant market position left over from those before times.
Theoretically the barriers to entry into the electricity distribution markets are lower hence with time more competition will arise, but that’s dependent on the laws passed by politicians to liberalize that market and politicians nowadays are very corrupt and design laws to benefit those who “reciprocate” their “friendly” consideration for their interests (and the most common way of doing so without being obvious is literally to thinker with those law to have artificial barriers to entry in the market thus protecting the market dominance of existing big market players)
I assume what happened was costs went up $18B, but they charged an extra $130B because they knew they could get away with it.
And then they release statements saying greedflation isn’t real and that inflation is driven purely by consumer demand 🙄 please…
Probably it’s the additional costs of having to ship some of the oil from further away and having to exploit more costly oil reserves (such as lower yield fracking oil reserves in the US).
Higher oil prices make alternative oil sources (fracking, tar sands) viable, but they weren’t viable before with lower oil prices exactly because they’re more costly.
That’s why energy companies don’t go green energy that much. There’s not enough chances for greedflation.
Sure there is. My electric company is primarily remewables and somehow the rates just increased again! After doing the same thing for the last several years in a row! My electric bill is now nearly double what it was 6-7 years ago.
What they do is say “due to increased demand” (which doesn’t exist unless you count overproduction that goes to other places).
Lying is just good business, especially of it’s only a lie technically!
The classic oil price goes up, gas price shoots up the next day and slowly floats down over weeks gives in general a higher margin and that’s what they’re going for.
I pay for 100% renewable generation. Sometimes the supplier makes so much electricity that the price occasionally goes negative. The consumer will never see the benefits of that while the coal plant subsidies exist. 100% solar is priced the same as coal, since that is the competitor/alternative to get electricity (free market baby! What is a utility but a legalized monopoly anyway?), plus a subsidy to keep the coal plant in operation. Without the need to pay the subsidy, the pricing factors change, green energy is now competing against each other, instead of carrying the load of outdated, inefficient and toxic coal plants.
Yeah, they used to leverage the barriers to entry into the generation market (before solar and wind, when only those with lots of $$$ could set up power generation facilities because the most efficient ones were big and very expensive ) to extract more money from customers, now they leverage the barriers to entry into the distribution market as well as the dominant market position left over from those before times.
Theoretically the barriers to entry into the electricity distribution markets are lower hence with time more competition will arise, but that’s dependent on the laws passed by politicians to liberalize that market and politicians nowadays are very corrupt and design laws to benefit those who “reciprocate” their “friendly” consideration for their interests (and the most common way of doing so without being obvious is literally to thinker with those law to have artificial barriers to entry in the market thus protecting the market dominance of existing big market players)