As briefed in my previous post there are an substantial number of players involved within the energy logistics, and overhead involved at each level. However the presence and operations of multiple players need not be an evil in itself and, cause an unfair price to be levied on the energy consumers. The consumer suffers when any or all of the situations arise with respect to each level of energy logistics.
1) Endemic inefficiencies within the entities involved in energy logistics.
2) Monopoly of energy resources, extraction technology, infrastructure and associated services by a single or group of entities.
3) Restrictive laws enforced in the name of Energy security.
4) Excessive standardization (of end fuels ) which discourages diversity in energy utilization technologies.
The above points can be easily illustrated by asking ourselves a few simple questions.
1) The government levies a huge tax on fuels (more than 50% presently), but what is the value of service (with regard to energy) provided by it.
2) How many companies are there in oil exploration and refining in India? More importantly how many new companies were allowed into these sectors in recent years.
3) If you discover that there is a small oil well (or any other energy resource) in your property, can you use it without fear of government or corporate intervention.
4) If I make a highly efficient car engine which however requires a slight change in fuel composition can I find it.
I am sure you will find that the answers to the questions above will at least partially reveal how enslaved we are to the system for our energy needs.
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