Posted on 09/06/2005 9:23:20 AM PDT by .cnI redruM
Second of all, if we were a smart enough nation to realize that supply-side economics worked well with currency, why are we too stupid to attempt the same measures with commodities such as gasoline?
more importantly, why are we posting 5 day old news as if the price of oil isn't continuing to decline?
why are we too stupid to attempt the same measures with commodities such as gasoline?
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Simple. Because that is not the way the oil companies want it. And those companies make very substantial campaign contributions of BOTH SIDES of the aisle.
How can a journalist possibly be talking about gas wells in one paragraph and then gasoline prices in the next but call gasoline gas?
Go Nuclear...!
WTOP is the DC local 24/7 radio news program. Not having cable TV they are pretty much the only dose of liberal indoctrination I get. Last Friday night I almost swerved off the road listening to an "Economic expert" out of George Mason. He said the solution was to build more refineries and hit the touching points a few of us have been screaming about here at FR. WTOP even let him go as far as to mention that a reduction in gas taxes (federal or state) will only exacerbate the problem and gave a quick supply and demand lesson! (insert comment about stopped clocks here)
There you go! Mr. George understands that price controls only invite hoarding and shortage. I respect the DC libs for allowing him speak his piece.
This is a very good point. The oil companies may not want to look like they are siding with the environmentalists and NIMBY crowd but it serves their purposes to keep a comodity scarce and limit competition. Then it is interesting that the very leftists that oppose new refineries are compelled to hate the oil companies who wind up making huge windfall proffits during times of scaricity. The leftists who understand capitalism (and I am sure they are few and far between) must be going nuts when they see how easily their policies can be "used" against them.
Of course their solution is to invoke total government controls. But allowing more refineries would better create the competition that will drop the prices for everyone. This will lead to growth and population increases, again things the left does not want to see, because these new groups have jobs and won't be beholden to the left.
The refineries I've seen are mega-sized.
Is there any type of refinery that is medium or small designed to service a much smaller area?
Just a guess...
;^)
''Bloomberg News reports that Katrina forced the temporary closure of at least eight refineries, responsible for as much as 10 percent of the nation's oil production.''
Boyohboy, dose must be dem new refineries, yuknow, dose ones dat pump de crude AND refine it.
Who IS this loon? Sheesh.
Good point. It almost seems that the media is soo afraid of a public backlast against inadequate oil supply infrustructure that they are scrambling to "control the message".
Which means that the only ways to get the reserve refinery capacity we need would be to encourage new companies to enter the refinery marketplace or to create a "strategic refinery reserve" similar to the SPR.
The Bush administration over the past five years has been limp-wristed at best in its advocacy of such concepts.
Because said 'journalist' is an idiot
Ding! ding! ding! ding! We have a winner!
Took the words out of my mouth!
I disagree with that assesment so do several others....
more here: http://exposingtheleft.blogspot.com/2005/09/forbes-predicts-oil-will-drop-to-35.html
"Which means that the only ways to get the reserve refinery capacity we need would be to encourage new companies to enter the refinery marketplace or to create a "strategic refinery reserve" similar to the SPR."
1) Build a company to pull in all the investors drooling at the new biolfuels potential market all across America.
2) Pull in 50 billion dollars from said investors to build 7 new biofuels refineries in the Midwest, powered by two nuclear power plants to fuel the conversion of plant matter to biofuels.
3) Sell biofuel to Exxon and other major US oil companies that have national distrubution to the local retailers.
4) Begin exporting biofuel product to other countries and reap massive windfalls of profit.
I am simplifying a business model but one that is going to be done by someone very soon I am sure.
I believe simply removing some environmental restrictions and requirements would allow new refineries to enter the clearly profitable business at this time.
If that is what you meant by "encouraging new companies to enter the refinery marketplace" then we are on the same page.
However, your comment about the Bush administration being "limp wristed" is curious. Has the Bush administration been attempting to push an energy bill through congress since his initial election? Or do you mean Bush has not pushed congress hard enough? There is opposition to his policies, maybe the opposition will vacate a little now that Katrina has shown how vulnerable we are. I suspect Bush will take full advantage of the rising prices as a result of this storm, and we will see new energy plants, refineries, drilling in Alaska, and even the dreaded nuclear power generation plants. I for one am looking forward to this. And the resultant growth that these initiatives will bring.
There is a small refinery here in Fairbanks, North Pole actually. It has been there a couple of decades and provides fuel to several company-owned service stations as well as the International Airport for the big intercontinental freighters. The refinery has changed hands several times including just before the current price run-up.
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