One way the energy giants get profits is due to the dividing up of the sectors. Big profits in the exploration, extraction processing then the retail side trades at a loss. The top end company gets big profits whilst the bottom end to consumers makes losses/ small profits. An analogy might be supermarket loss leader lines. The choice to make profit away from the consumer end is a “ hidden” strategy. The lower end ( prices to Joe Public) end up buying from the earlier stages at controlled price to suit the company. The market price of, say, crude oil isa controlling factor. Reduce supply to inflate the $ per barrel to maintain profit at that end of the chain.
It does amaze me that energy is such a strategic item and yet it seems to be less than highly managed. Short term “deals” and thinking lead to volatility that can be reduced. Politicians being lobbied by vested interests with strong lobbying power? There is a case for state intervention to such strategically important sectors. Not necessarily nationalisation but state backing. Nuclear power as a baseline supplier with Government oversight to maintain a suitable level.
What do we get? Anti nuclear and privatisation influence that fogs the basic need for energy.
