by Pops » Tue 15 Nov 2016, 00:01:31
$this->bbcode_second_pass_quote('sjn', 'I') was attempting to highlight the point which ETP attempts to quantify, that I'm sure you would agree with: As the energy production sector of the economy needs to increase it's use of energy, there is proportionally less remaining for the rest of the economy.
Increased use of energy is no different than an increased tax rate or increased royalty demands or increased safety measures or increased cost of enviro remediation or any of a hundred things I'm sure.
The energy in a barrel of oil of a given flavor is constant, it's the price that changes, exactly the same as always.
When costs to produce rise, the price must rise if supply is to be constant, doesn't matter if the extra cost is diesel, steel, taxes or Tony Lamas.
If the utility provided by the oil to the consumer is sufficient, the increased price will be paid, if not it won't. Same as always.
Again, the energy available doesn't change, and it doesn't matter a bit the reason for the increased price, only the cost/benefit to the consumer.
If the new price is too high vs utility, demand will fall until balance
If the new price is too low, supply will fall until balance
It ain't rocket surgery, it ain't thermodynamics, it's just barter. It is just a market. Just supply and demand. Granted a most important and historically slow acting supply and demand that is really sticky in the short run but still just a market.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)