Quote:
Originally Posted by Robbb
Its called supply and demand. When the government restricts supply buy increasing regulations, canceling pipelines, discouraging investment, and delaying or canceling permits, supply drops and prices skyrocket. This is a completely self inflicted crisis. The answer, drill baby drill.
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Supply and Demand is the culprit behind the price increase. When you limit the supply, the demand stays the same and prices go up. Who sets these prices - it begins with the cost per barrel which fluctuates daily. In 2020 the average price per barrel was $39.68; in 2021 the average price was $68.17. The average for 5 months of 2022 is $99.56 and the price today is $120 per barrel - 200% more than 2020.
Why did the price per barrel go up? Because the supply was cut; the demand stayed the same and buyers of oil were willing to pay more to meet the demand.
Does this affect industries other than automotive? A little under ½ a barrel of oil is used for gas. The rest goes to the manufacture of plastics, fertilizer, cosmetics, detergents, solvents and pharmaceuticals.
I recall, in 2016, when Candidate Obama was interviewed about Climate Change, he stated that he would like to see gas prices go up to $7 or $8 per gallon to stimulate the growth of renewable energy. He trained his Vice-President well. I guess neither man considered the collateral damage of their decisions.