Well to be honest, although it may not be true for oil, it can definitely be true briefly for electricity, because it’s use it or lose it. Battery storage is still in its infancy.
Negative prices are definitely a thing when you can’t stop production and all of a sudden storage or middlemen are over capacity.
LOOK AT WHAT IS HAPPENING right now in the US food chain! The farmers have to euthanize cattle rather than sell them because the price they get is lower than upkeep. Yet the price of meat at the supermarket is going up and up. What’s going on? Well, the processing plants have shut because they’re sending employees home if anyone is infected, and so the capacity of the middlemen drops. And boom, there is a huge inefficiency now.
Someone in congress is working on a bill to let the farmers and supermarkets disintermediate... as usual, decentralization to the rescue.
Negative prices are definitely a thing when you can’t stop production and all of a sudden storage or middlemen are over capacity.
LOOK AT WHAT IS HAPPENING right now in the US food chain! The farmers have to euthanize cattle rather than sell them because the price they get is lower than upkeep. Yet the price of meat at the supermarket is going up and up. What’s going on? Well, the processing plants have shut because they’re sending employees home if anyone is infected, and so the capacity of the middlemen drops. And boom, there is a huge inefficiency now.
Someone in congress is working on a bill to let the farmers and supermarkets disintermediate... as usual, decentralization to the rescue.