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> So oil tripling overnight would not result in a tripling of energy prices. By the very nature of energy, oil prices CAN'T triple without all other energy sou
by ars 7y ago
> So oil tripling overnight would not result in a tripling of energy prices.
By the very nature of energy, oil prices CAN'T triple without all other energy sources also tripling.
If there was a shortage of oil then the price of oil simply could not go up unless there just wasn't enough energy from other sources. Oil (and natural gas) are the most flexible of all energy sources, most of them are pretty maxed out, but oil and gas can adjust to take up slack.
- rgbrenner 7y agoOil was 19$ in 1998, and 107$ a decade later (inflation adjusted). That’s over 5x. https://inflationdata.com/articles/inflation-adjusted-prices/historical-crude-oil-prices-table/ https://inflationdata.com/articles/inflation-adjusted-prices... Here’s retail energy prices: https://www.eia.gov/totalenergy/data/annual/showtext.php?t=ptb0810 https://www.eia.gov/totalenergy/data/annual/showtext.php?t=p... Show me where it went up anything close to 5x
- acchow 7y ago> By the very nature of energy, oil prices CAN'T triple without all other energy sources also tripling. This is false. You can't freely substitute oil with nuclear-generation as price vary. There are a huge number of cars and airplanes and plastics production that depend on oil.