- Oil and gas facilities in Russia have caught fire in recent weeks following suspected drone attacks.
- In the latest attack, an oil refinery in the southwestern Volgograd region was ablaze on Saturday.
- Russia’s air-defense systems have proven to be less effective against small drones.
They could just as easily build one in India without this one being destroyed and either way, replacing it costs money. You’re talking absolute nonsense.
demand
Ok… I DEMAND that he stops talking nonsense!
That better? 😛
Supply and demand applies. In the short term, oil usage is fairly inelastic. If supply is squeezed, by Russia not being able to produce, then prices climb. This encourages the building of new plants, or the expansion of old ones due to rising profits. It also encourages affected nations to build plants, to secure their own national requirements.
To fix things, you need to attack both supply and demand. Demand is helped by reduce the friction with moving away from oil, as well as providing cost competitive alternatives. Supply is helped by forcing the externalised costs back into its pricing. This reduces profitability, and increases the pressure to change away from oil.
Not on the local level with a global commodity like oil.
Not necessarily, no. Other oil producing countries might elect to release some of their reserves or increase production to keep prizes down. As I said, global commodity.
Aaaand the rest just keeps on in the same way of assuming that local supply has vital effects on the price of a global commodity, so I’m just gonna stop repeating the point you keep missing in your zeal to make one less oil refinery in the world a bad thing 🤦