Actual $/barrel vs ETP
Data from: EIA
blue curve, exponential equation derived from ETP model
ETP (Total Production Energy) is the total energy required to extract, process and distribute a gallon of petroleum. It is the
total energy required to produce petroleum that controls its price. Since the energy content of a unit of petroleum is fixed for any
particular fraction the amount of energy remaining for use by the end consumer is controlled by ETP. Graph# 9 shows the correlation
between historical WTI prices as reported by the EIA, and output from the ETP model.