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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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Power Failures Outrage South Africa
Consumption; Demand; PricesGuest writes:

JOHANNESBURG, South Africa — At first, the power blackouts seemed a mere nuisance, the electricity suddenly dead for two or three hours at a time, two or three times a day. Radio announcers jocularly advised listeners to make their morning toast by vigorously rubbing two pieces of bread together and wisecracked about amorous uses for the extra darkness.

But after three weeks of chronic failures —after regularly irregular vexations with lifeless computers, stove tops and stoplights — public forbearance has given way to outrage. This nation, long a reliable repository of cheap, plentiful electricity, finds itself pitifully short of juice.


The government has confessed to an “electricity emergency” and has begun a program of rationing for industrial users. This is a mortifying turn for a country that considers itself the powerhouse of Africa and resists comparisons to its underdeveloped, famine-plagued neighbors.

But electricity shortages, now expected to be a fact of life for the next five years, are more than an embarrassment. They threaten continued strong growth here in a nation that accounts for a third of sub-Saharan Africa’s economic output and ranks among the world’s top 25 countries in gross domestic product.

AP

Posted on Thursday, January 31 @ 16:48:47 PST by Leanan
 
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