OPEC says oil supplies not the problem

techs

Lifer
Sep 26, 2000
28,559
4
0
http://news.yahoo.com/s/nm/20060422/bs_....HQA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-

OPEC says oil supplies not the problem
OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.

"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the International Monetary Fund's policy committee on behalf of the oil cartel.



Here's the part I don't understand:
"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.

I am under the impression that it would be against the law of supply and demand to build "spare capacity". In fact I can not find one instance of a barrel of crude oil going unrefined due to lack of capacity.
Why would any company build more "spare capacity"? Wouldn't it just go unused or have to lower its prices to take oil away from current refineries? And why would a company want to charge less at the refineries it already operates?
Lastly, I don't understand how the F*CK with GAS PRICES SO HIGH the US ENERGY SECRETARY IS NOT GOING TO ASK OPEC TO INCREASE PRODUCTION????????
WTF???
WTF???
WTF???

 

RichardE

Banned
Dec 31, 2005
10,246
2
0
Originally posted by: techs
http://news.yahoo.com/s/nm/20060422/bs_....HQA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-

OPEC says oil supplies not the problem
OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.

"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the International Monetary Fund's policy committee on behalf of the oil cartel.



Here's the part I don't understand:
"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.

I am under the impression that it would be against the law of supply and demand to build "spare capacity". In fact I can not find one instance of a barrel of crude oil going unrefined due to lack of capacity.
Why would any company build more "spare capacity"? Wouldn't it just go unused or have to lower its prices to take oil away from current refineries? And why would a company want to charge less at the refineries it already operates?
Lastly, I don't understand how the F*CK with GAS PRICES SO HIGH the US ENERGY SECRETARY IS NOT GOING TO ASK OPEC TO INCREASE PRODUCTION????????
WTF???
WTF???
WTF???


Ever taken a basic economics course?
 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Originally posted by: RichardE
Originally posted by: techs
http://news.yahoo.com/s/nm/20060422/bs_....HQA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-

OPEC says oil supplies not the problem
OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.

"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the International Monetary Fund's policy committee on behalf of the oil cartel.



Here's the part I don't understand:
"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.

I am under the impression that it would be against the law of supply and demand to build "spare capacity". In fact I can not find one instance of a barrel of crude oil going unrefined due to lack of capacity.
Why would any company build more "spare capacity"? Wouldn't it just go unused or have to lower its prices to take oil away from current refineries? And why would a company want to charge less at the refineries it already operates?
Lastly, I don't understand how the F*CK with GAS PRICES SO HIGH the US ENERGY SECRETARY IS NOT GOING TO ASK OPEC TO INCREASE PRODUCTION????????
WTF???
WTF???
WTF???


Ever taken a basic economics course?

What does the above have to do with the price of "OIL"?

 

techs

Lifer
Sep 26, 2000
28,559
4
0
Originally posted by: RichardE
Originally posted by: techs
http://news.yahoo.com/s/nm/20060422/bs_....HQA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-

OPEC says oil supplies not the problem
OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.

"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the International Monetary Fund's policy committee on behalf of the oil cartel.



Here's the part I don't understand:
"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.

I am under the impression that it would be against the law of supply and demand to build "spare capacity". In fact I can not find one instance of a barrel of crude oil going unrefined due to lack of capacity.
Why would any company build more "spare capacity"? Wouldn't it just go unused or have to lower its prices to take oil away from current refineries? And why would a company want to charge less at the refineries it already operates?
Lastly, I don't understand how the F*CK with GAS PRICES SO HIGH the US ENERGY SECRETARY IS NOT GOING TO ASK OPEC TO INCREASE PRODUCTION????????
WTF???
WTF???
WTF???


Ever taken a basic economics course?
Yes. 30 undergrad and 12 grad credits.

 

techs

Lifer
Sep 26, 2000
28,559
4
0
Originally posted by: Red Dawn
It's all due to bend over and take it supply and demand.
Well, there seems to be no shortage of bending over and taking it.

 

techs

Lifer
Sep 26, 2000
28,559
4
0
Originally posted by: RichardE
Originally posted by: techs
http://news.yahoo.com/s/nm/20060422/bs_....HQA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-

OPEC says oil supplies not the problem
OPEC oil-producing nations said on Saturday oil prices have risen despite a well-supplied market, adding it was urgent to find new indicators of price trends to supplant the now-unreliable gauge of oil stocks.

"This price rise occurred despite the fact that the market continues to be well-supplied," OPEC official Adnan Shihab-Eldin told a meeting of the International Monetary Fund's policy committee on behalf of the oil cartel.



Here's the part I don't understand:
"The picture on the products side remains tight, given the persistently low levels of refinery spare capacity and more stringent products specifications" in the United States, the OPEC official said.

I am under the impression that it would be against the law of supply and demand to build "spare capacity". In fact I can not find one instance of a barrel of crude oil going unrefined due to lack of capacity.
Why would any company build more "spare capacity"? Wouldn't it just go unused or have to lower its prices to take oil away from current refineries? And why would a company want to charge less at the refineries it already operates?
Lastly, I don't understand how the F*CK with GAS PRICES SO HIGH the US ENERGY SECRETARY IS NOT GOING TO ASK OPEC TO INCREASE PRODUCTION????????
WTF???
WTF???
WTF???


Ever taken a basic economics course?
Yes and here's a VERY SIMPLE FACT. IF THERE WERE NO MORE REFINING CAPACITY THAN OPEC WOULD NOT HAVE ANY PRESSURE TO PUMP MORE. JUST PUMP A FEW BARRELS THAT SIT AROUND BECAUSE THERE IS NO MORE CAPACITY AND THE CALLS FOR THEM TO PRODUCE MORE WOULD END.
THERE IS SUFFICIENT SPARE REFINING CAPACITY TO TAKE CARE OF A COUPLE OF MILLION MORE BARRELS A DAY. SO DON'T LET OPEC GIVE YOU ANY CR*P ABOUT LACK OF REFINING CAPACITY.

 

zephyrprime

Diamond Member
Feb 18, 2001
7,512
2
81
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.
 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
 

techs

Lifer
Sep 26, 2000
28,559
4
0
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.

 

charrison

Lifer
Oct 13, 1999
17,033
1
81
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).

Oil appears to be pilling up because it is flowing though the refinaries. The switch to more ethanol, low sulfer diesel, switch summer blends and refinary maitnance seem to be causing that.
 

charrison

Lifer
Oct 13, 1999
17,033
1
81
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.
 

techs

Lifer
Sep 26, 2000
28,559
4
0
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.
I really got to ask you. Is that what you meant to say? Because if there were a lack of spare capacity than the price of crude would be LOWER!!! Or did you repeal the law of supply and demand?
If you pump more oil than can be refined it causes an oversupply of crude. Which means refineries can pay less for crude in the oversupplied crude market.

 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.


Well, regardless of the so called "spare capacity", inventories are rising and the oil ministers of OPEC state that the world is WELL SUPPLIED. Oil prices are not a function solely of supply and demand right now. More speculation than demand, period.

Apparantely you believed that stocks were well valued in the late 90's also?
 

charrison

Lifer
Oct 13, 1999
17,033
1
81
Originally posted by: Engineer
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.


Well, regardless of the so called "spare capacity", inventories are rising and the oil ministers of OPEC state that the world is WELL SUPPLIED. Oil prices are not a function solely of supply and demand right now. More speculation than demand, period.

Apparantely you believed that stocks were well valued in the late 90's also?


I dont disagree there is speculation in the oil market. Limited spare world capacity and political unrest with iran and nigeria are not helping at this point.
 

charrison

Lifer
Oct 13, 1999
17,033
1
81
Originally posted by: techs
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.
I really got to ask you. Is that what you meant to say? Because if there were a lack of spare capacity than the price of crude would be LOWER!!! Or did you repeal the law of supply and demand?
If you pump more oil than can be refined it causes an oversupply of crude. Which means refineries can pay less for crude in the oversupplied crude market.

There are problems with refining capacity and world oil capacity.
 

techs

Lifer
Sep 26, 2000
28,559
4
0
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.
Wrong. Wrong. Wrong. Who says there is a lack of refining capacity? Every barrel of oil pumped is being refined. No shortage there.
Spare refining capacity? If there is no more crude to be refined what effect does spare refining capacity have on ANYTHING? It is SPARE. AS in NOT used.
There is certainly no worldwide refining shortage. Most countries let you build a refinery and pollute as much as you want. And yet they are not building refineries.
Because there is no shortage of refining capacity.
And.
It makes more sense to have 'spare' refining capacity close to the sources of crude. It is cheaper and more efficient to refine crude in Saudi Arabia. Why? When you refine it there you can ship the products where they are needed. For instance gas to the US in the summer and heating oil to the Southern Hemishere during their winter, and vice versa. This is cheaper and more efficient than shipping crude to the US and refining it, then shipping heating oil down to South America in our summer and the reverse in our winter.
The whole "refining" shortage is an oil company (and Bush) ploy to come up with a reason that oil is so high and distracts us from the truth that the oil companies and Bush have done everything they could to get oil prices high.

 

charrison

Lifer
Oct 13, 1999
17,033
1
81
Originally posted by: techs
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.
Wrong. Wrong. Wrong. Who says there is a lack of refining capacity? Every barrel of oil pumped is being refined. No shortage there.
Spare refining capacity? If there is no more crude to be refined what effect does spare refining capacity have on ANYTHING? It is SPARE. AS in NOT used.
There is certainly no worldwide refining shortage. Most countries let you build a refinery and pollute as much as you want. And yet they are not building refineries.
Because there is no shortage of refining capacity.
And.
It makes more sense to have 'spare' refining capacity close to the sources of crude. It is cheaper and more efficient to refine crude in Saudi Arabia. Why? When you refine it there you can ship the products where they are needed. For instance gas to the US in the summer and heating oil to the Southern Hemishere during their winter, and vice versa. This is cheaper and more efficient than shipping crude to the US and refining it, then shipping heating oil down to South America in our summer and the reverse in our winter.
The whole "refining" shortage is an oil company (and Bush) ploy to come up with a reason that oil is so high and distracts us from the truth that the oil companies and Bush have done everything they could to get oil prices high.



Well right now you are quite wrong. There every barrel being pumped is not being refined. Refinaries are down for spring maitnance and switch over the summer fuels. All are gearing up for low sulfer diesel, some are retooling for more ethinal. I think 1 or 2 are still down from katrina. I know one of those downed by kartina just came back online this month. Gas stocks are dropping and oil stocks are rising, so it does appear there is a refining issue.
 

daniel49

Diamond Member
Jan 8, 2005
4,814
0
71
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.



Hello in this country at least we have not built a new refinery in over 30 years.
Kiss the tree huggers for that one.
 

charrison

Lifer
Oct 13, 1999
17,033
1
81
Originally posted by: daniel49
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.



Hello in this country at least we have not built a new refinery in over 30 years.
Kiss the tree huggers for that one.



That is not exactly true either. No new refineries ahve been built in some time, but many have been expanded.
 

Steeplerot

Lifer
Mar 29, 2004
13,051
6
81
Originally posted by: daniel49

Kiss the tree huggers for that one.

No, thank raygun reagan for killing all of carters massive investments of renewable fuels, and investments in things like mass transit after the 1970s oil crisis.

The neocons wanted laserbeams in space.
 

daniel49

Diamond Member
Jan 8, 2005
4,814
0
71
Originally posted by: Steeplerot
Originally posted by: daniel49

Kiss the tree huggers for that one.

No, thank raygun reagan for killing communism, and The berlin Wall

The neocons want the same things you just touted but who's on the other side of the fence now??

fixed
 

techs

Lifer
Sep 26, 2000
28,559
4
0
Originally posted by: Steeplerot
Originally posted by: daniel49

Kiss the tree huggers for that one.

No, thank raygun reagan for killing all of carters massive investments of renewable fuels, and investments in things like mass transit after the 1970s oil crisis.

The neocons wanted laserbeams in space.
And Brazil, a third world country at the time decided during the 70's oil crisis that there was a solution and they fixed the problem. Which is why Brazil now relies mostly on ethanol for motor fuel and with the beginning of their newest oil well recently have become self sufficient in fuel.
While we blew trillions on tax cuts for the rich and the aforementioned laserbeams in space.

 

catnap1972

Platinum Member
Aug 10, 2000
2,607
0
76
Originally posted by: daniel49
Originally posted by: charrison
Originally posted by: techs
Originally posted by: Engineer
Originally posted by: zephyrprime
If lack of refining capacity were the problem, then only gasoline and diesel would be expensive while crude would remain cheap. Also, not all countries would be likely to have a refining problem at the same time so not countries would have high gas prices. Clearly, whether or not refining capacity is lacking is besides the point. The primary problem is lack of crude or parhaps some market manipulation.

Must not be lack of crude as OPEC stated (in article above) that crude was well supplied and also inventories are at an 8 year high (worldwide).
And it there is no lack of crude than crude should not be expensive. In fact if there were an excess of crude and a lack of refining capability crude would be extra CHEAP. And gas and heating oil would be expensive.
So I think we have effectively debunked the shortage of refining capacity as the cause for high prices.
And the good old free market should kick in if more crude were pumped.
Leaving the high price of crude squarely in OPECS lap.



The reality of refining capacity is that there are problems. The lack of spare capacity on the oil market is driving the world price for crude higher.



Hello in this country at least we have not built a new refinery in over 30 years.
Kiss the greedy oil companies for that one.

FIXED