Sen Manchin raises alarms on inflation - inflation to the American people is not "transitory"

Sig said:
I'm curious how, in very specific examples, green energy policy has caused fossil fuel oric s to go up? Renewable energy displaces fossil fuel, so if anything it reduces demand/increases supply which would result in a price decrease.

And "public fears of fossil energy", I'm not even sure I know what that means let along how it has directly led to higher gas prices?
More...

This is not quite right.

The "green" is politically motivated. It promotes "green" energy at the expenses of fossil energy. But the "green" energy technology is not there. So government has to provide subsidies, like $7,500 credit for an EV. Same with solar.

And all policies are against fossil energy. Energy drillers can't get enough capital. So this created supply issues.

It is the recovery of economy that is faster than the recovery of energy supply. It creates the "tightness" of energy market.
 
RedSun said:
This is not quite right.

The "green" is politically motivated. It promotes "green" energy at the expenses of fossil energy. But the "green" energy technology is not there. So government has to provide subsidies, like $7,500 credit for an EV. Same with solar.

And all policies are against fossil energy. Energy drillers can't get enough capital. So this created supply issues.

It is the recovery of economy that is faster than the recovery of energy supply. It creates the "tightness" of energy market.
More...
Sorry, that's still not making sense on a bunch of levels. Mainly, if the government gives subsidies to EVs then it decreases demand for oil. Oil prices are based on supply and demand, decreasing demand decreases prices. So how, specifically, does taking an action that decreases demand for oil cause higher oil prices? Solar is even more baffling, since solar has so far displaced mainly coal (almost no electricity is produced from oil). To the extent that solar replaces natural gas generation, again it decreases demand for natural gas which provides downward pressure on prices. If you maintain that neither EVs or solar actually work, then it still wouldn't drive oil prices up to subsidize them, it would simply have no impact on them. I'm baffled by the logic on this?

I also am curious what you've based the assertion that energy drillers can't get enough capital. I work in this industry, that's not a problem I am aware of anyone who actually does this is suffering. If this was true, then the oil company bond interest rates would be higher than they had been before and higher than similar Fortune 500 companies. In reality they are actually lower, not much higher than treasuries.

You last paragraph is right on, that explains the majority of the current energy price driver. The rest is a viewpoint I'm guessing you inherited but isn't really your own, i.e. you haven't stopped to research and really think about it yet.
 
Sig said:
Sorry, that's still not making sense on a bunch of levels. Mainly, if the government gives subsidies to EVs then it decreases demand for oil. Oil prices are based on supply and demand, decreasing demand decreases prices. So how, specifically, does taking an action that decreases demand for oil cause higher oil prices? Solar is even more baffling, since solar has so far displaced mainly coal (almost no electricity is produced from oil). To the extent that solar replaces natural gas generation, again it decreases demand for natural gas which provides downward pressure on prices. If you maintain that neither EVs or solar actually work, then it still wouldn't drive oil prices up to subsidize them, it would simply have no impact on them. I'm baffled by the logic on this?

I also am curious what you've based the assertion that energy drillers can't get enough capital. I work in this industry, that's not a problem I am aware of anyone who actually does this is suffering. If this was true, then the oil company bond interest rates would be higher than they had been before and higher than similar Fortune 500 companies. In reality they are actually lower, not much higher than treasuries.

You last paragraph is right on, that explains the majority of the current energy price driver. The rest is a viewpoint I'm guessing you inherited but isn't really your own, i.e. you haven't stopped to research and really think about it yet.
More...

Just read more. A lot articles about this.
 
RedSun said:
Just read more. A lot articles about this.
More...
This is what I do for a living, I run a business in this industry. I spend most of the day almost every day either reading about or doing this!

Like I mentioned, this doesn't feel like a viewpoint that you arrived at from research and thinking about the underlying issues. It feels like something you read a couple articles about, in publications that support your natural political inclination, and just adopted without subjecting them to any critical thought. It fundamentally makes no sense to argue that taking away demand for a product leads to supply shortages and higher prices. No amount of exhortations to "just read more" make that inconvenient fact go away. Seriously, you're better than this.
 
Sig said:
This is what I do for a living, I run a business in this industry. I spend most of the day almost every day either reading about or doing this!

Like I mentioned, this doesn't feel like a viewpoint that you arrived at from research and thinking about the underlying issues. It feels like something you read a couple articles about, in publications that support your natural political inclination, and just adopted without subjecting them to any critical thought. It fundamentally makes no sense to argue that taking away demand for a product leads to supply shortages and higher prices. No amount of exhortations to "just read more" make that inconvenient fact go away. Seriously, you're better than this.
More...

Sure, good luck with you with your living...
 
You must log in or register to reply here.
Back
Top