4 ms·
Two major things I see: have to normalize the value of money in real dollars to adjust for inflation - so years ago $1 is not the same value as today. Secondly
by Scipio_Afri 4y ago
Two major things I see: have to normalize the value of money in real dollars to adjust for inflation - so years ago $1 is not the same value as today.
Secondly crude is not gas, gas is refined crude. Refiners are not adding capacity, actually there’s been a decline so there is a bottleneck there. Refineries might also now cost more to operate now due to .. well rising energy prices for one, but at least one other factor might be (not sure if this is true, but plausible) more stringent regulations on environmental pollution from the refining process.
- cptskippy 4y agoIt's fair to say refining capacity has been systematically reduced to create a bottleneck for the purposes of price manipulation. Refineries have been running at ir near capacity for the last 20 years with no expansion in capacity. Any downturn or lack of demand has however been used as an opportunity to reduce capacity. https://www.eia.gov/todayinenergy/detail.php?id=48636 https://www.eia.gov/todayinenergy/detail.php?id=48636 There's no competition because demand outstrips supply.