Comment on Around 80% of Rosebank field oil will not be kept in UK to boost energy security
idkmybffjoeysteel@hexbear.net 10 months agoSorry buddy but the price of energy in the UK is no longer correlated with supply and demand and hasn’t been for at least two years now.
Biohazard@feddit.uk 10 months ago
Obviously it is. When oil prices are high, do petrol prices go down?
idkmybffjoeysteel@hexbear.net 10 months ago
A better question is, if the underlying cost of providing energy has increased, why are fossil fuel companies reporting record high profits.
Biohazard@feddit.uk 10 months ago
Because when you charge 20% on something and the value of that thing doubles you make double the amount too. I think the UK government is way too cosy with big oil and is scared of asking for more
420stalin69@hexbear.net 10 months ago
Think about what you just said for a second.
If the price doubles and the profit margin remains the same, that exactly means that the price is inelastic.
Which is directly synonymous with saying the price is not subject to supply and demand pressure because that would imply elasticity.
You pointed to price inelasticity as proof of price elasticity. God fucking damn.