https://en.wikipedia.org/wiki/2000%E2%80%9301_California_ele...
20X increase in energy costs at that time
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ELI5:
While you're speaking that SPOT crude remains relativistic constant/regular over time, may you please explain if this is true, what the cost increases at the pump are directly related to?
When I began driving, the spot price tracking you mention was the same, but the pump price was $.99/gallon for gas...
So, I admit I do not have an understanding of the reasons behind the price at the pump, but shouldn't that price match the same graph?
If not, please ELI5 how it now apparently costs 5X the cost to deliver gas to the pump?
Shouldnt any company be seeking economies at scale and more efficient everything - especially in OIL/GAS where they are really reliant on compute for the future success of their industry and the power of compute is 10,000X more powerful today than in 1990?
Yet - the pump always goes up...
(I'll go ahead and you're going to excuse it as "the cost of doing business/expenses have gone up)
If true, then why isn't toilet paper $50/roll? Trees are not going to replenish themselves at the same rate as our consumption... so shouldn't toilet paper be super expensive?
What is your opinion on the following video on the origins of oil and the origin of the term "Fossil Fuel" coined by Rockefeller:
1. your own article lists multiple non-eron related reasons for the crisis
2. AFAIK energy markets are the norm. state regulators might regulate the rates that retail customers pay, but the utilities are buying the electricity from the free market. Therefore the supply/demand dynamic when it comes to prices should already be factored in, which was why I was confused it was initially brought up.
>While you're speaking that SPOT crude remains relativistic constant/regular over time, may you please explain if this is true, what the cost increases at the pump are directly related to?
helpful page from eia.gov: https://www.eia.gov/petroleum/gasdiesel/
>When I began driving, the spot price tracking you mention was the same, but the pump price was $.99/gallon for gas...
obvious question: were you in the same state? taxes are baked into the gas price, so if you moved from texas to california, it wouldn't be surprising that your gas price went up for no reason.
>So, I admit I do not have an understanding of the reasons behind the price at the pump, but shouldn't that price match the same graph?
I went a step further and compared crude oil prices to retail gas prices (available from https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm), and found that the ratio hovers at around 2, with that ratio being higher in the 80s/90s than today. While there's some fluctuation, it's nowhere close to the amounts implied by your anecdotes. Speaking of which, I find your anecdotes impossible to substantiate. Which state did you live in? When was "the war"?
>If true, then why isn't toilet paper $50/roll? Trees are not going to replenish themselves at the same rate as our consumption...
I'm not sure where you're getting that conclusion from, but pulpwood trees are effectively farmed. The growth cycles are longer than something like corn, but they're still planted/replenished at approximately the same rate they're cut. The deforestation stories you hear are largely from developing countries cutting down forest for development purposes.
So while the maths ratio sounds small... the Human ratio is much greater based on the buying power of a dollar-vs-salary of the avg buyer...
so while it may seem one-way, the reality for the buyer is much different...
Here is an anecdote:
My GF has worked at The French Laundry for several years...
The top rest in the world according to some...
She lives in Sonoma Ca and it costs her $5.19 per gallon of gas. She drives an modern car with good gas mileage.
She pays $70 to 3/4 fill her car and travels ~30 miles one way to commute to a job at the top restaurant in the world which pays her $12/hour.
The bill says "Service Included" which leads guests to believe that "TIP IS INCLUDED" -- and so people that pay $75,000 for a meal (including wine) often DONT TIP...
Because they believe that "Service" == "Tip" NOPE.
The point is, that her commute costs her ~half a weeks actual pay to pay for fuel.
The point being that we THINK that the ratio --> relation to buying power has been constant, or even better these days with higher wages, the reality in the wallet is not such.
Even with a great job, at one of the best companies in the world (supposedly) -- She still struggles with just filling her car with gas.
Fuck big oil.
Thus, I am happy to capitulate and learn from your insights as well.
