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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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More energy riots - electrickery in Bangladesh
Consumption; Demand; PricesTwo hundred people, including police, were injured in Bangladesh as more riots and demonstrations have erupted in protest against regular interruptions to electricity supplies.

The present events are a continuation of a long-running struggle in the country over unreliable energy supplies. Power cuts affect daily life in various important ways. Life in city slums becomes even more unbearable when denied basic air conditioning of domestic fans during sweltering, humid weather. Workers lose earnings when production stops in the factories. Domestic water supplies are affected as the reservoirs and distribution system are dependent on electricity. Consumers are charged a regular meter rental fee whether or not supply is maintained. (In effect, you pay for the mere possibility of receiving electricity.)

Farmers' crop irrigation systems are also usually dependent on electrical pumps to draw the water from deep wells and bore holes. The effect of water shortages on rice crops have lead to fears of food shortages later in the year. Farmers fear economic ruin if the crops are lost.

The government claims that increased industrial demand is to blame for the power cuts and, as a token gesture, has announced its intention to turn off illuminated billboards and to restrict supplies to shopping malls.

libcom

Posted on Friday, September 29 @ 05:29:46 PDT by waegari
 
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