How things work
HOW THINGS WORK
Having worked in the Oil and Gas industry and the Utilities industry, I would like to clear up some misconceptions. The Oil and Gas industry does not set the price of the product. That is set by the futures market. The Utility industry uses oil and gas to produce electricity. The Utilities industry does not set the price of electricity. That is set by the regulatory commissions of states or municipalities.
When the amount of a given product is restricted and the demand for that product is increasing the price of the product will increase according to demand.
So, when the price of oil and gas goes up what happens.
Transportation costs rise.
Costs rise to ship raw materials.
Manufacturing costs rise.
Distribution costs rise.
Add the rise in costs for each step of the manufacturing process from the ground to the store and the increased costs are substantial. If you are in business, which one of you is willing to reduce your income to keep costs down. How long will you stay in business?
And if someone artificially restricts the flow of energy what happens?
Wake up before it is too late!
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