Posted on 05/23/2007 8:15:31 PM PDT by kellynla
Gas prices are spiking again — to an average of $3.22 a gallon, and close to $4 a gallon in many areas.
And some oil executives are now warning that the current shortages of fuel could become a long-term problem, leading to stubbornly higher prices at the pump.
They point to a surprising culprit: uncertainty created by the government’s push to increase the supply of biofuels like ethanol in coming years.
In his State of the Union address in January, President Bush called for a sharp increase in the use of biofuels, along with some improvement in automobile fuel efficiency to reduce America’s use of gasoline by 20 percent within 10 years. Congress is considering legislation calling for a nearly fivefold increase in the use of ethanol.
(Excerpt) Read more at nytimes.com ...
This is inaccurate. The oil industry has expanded refining capability in existing American refineries equal to building a new refinery a year. Of course the very people who are complaining are the ones who when asked if a new refinery can be built in their area; they respond; "not in my backyard!"
ping
Don’t worry, suing OPEC will drop the prices.
Try to imagine just how many lawyers it would take to build a new refinery, from the ground up, near the California coast? Are there that many in the world?
And no, it doesn't stink like butane when it's burned. More like bananas
Now we know why W is pushing biofuels. It’s like it was planned that way.
Well, the oil companies are playing the “supply” card. No surprise — at least they could just be honest about it. Shortage of gasoline? Hardly — there is a full supply in California at up to $3.70 per gallon, or so, all you want.
Refineries? Nice try guys.
In 1985 the US consumed 14.207 MMBPD Finished Petroleum Products
In 2005 the US consumed 18.650 MMBPD Finished Petroleum Products
1985 - 223 refineries averaged 12,165,000 barrels per day
2005 - 148 refineries averaged 15,578,000 barrels per day
They closed smaller, less efficient refineries while expanding and upgrading many of the other.
U.S. Finished Petroleum Products Product Supplied
http://tonto.eia.doe.gov/dnav/pet/hist/mtpupus2a.htm
In 1985 we refined 86% of the finished product we used.
In 2005 we refined 84% of the finished product we used.
U. S. Operable Crude Oil Distillation Capacity
http://tonto.eia.doe.gov/dnav/pet/hist/mocleus2a.htm
U.S. Gross Inputs to Refineries
http://tonto.eia.doe.gov/dnav/pet/hist/mgirius2a.htm
Economist F. A. Hayek, in The Road To Serfdom said that no good comes when government attempts to pick what technology it will approve of instead of just setting policy goals and letting the free market work out the details.
If the goal was to reduce imports of petroleum, then why not just set that policy? It would be simple: just declare that all oil imports must be approved and starting tomorrow the government will approve fewer and fewer imports until that amount will reach zero in 15 years.
That would be plenty of time and plenty of incentive for all manner of technologies that work today and are cost effective today to be put into production.
But no, that would require that we use some of our own energy resources, such as the ocean of coal from under Illinois, or the ocean of oil shales from under eastern Utah and Western Colorado, either of which contains more hydrocarbons than are found in Saudi oil fields.
Why are we making this so difficult?
Do you know what Exxon/Mobil world market share is?
“Free market” has one diminishing return: emotions can drive people to communism.
If gas cost many times greater, I would never feel entitled to price controls. Others would, unfortunately, and they would totally abandon their principles with self-righteous demands for something that is simply not theirs.
the Slimes is so dishonest... that refineries quote is just another example
Two things, the chart above is gasoline only, it does not include diesel. Secondly, that was implemented last year.
thanks, bfl
Good info....
“Free market”
Free market is the solution - and this has to mean that ALL alternative energy forms be allowed without Govt interference or suppression.
There are energy solutions that require no fuel. I have seen them in operation. The govt suppression of all of these has kept us at the mercy of the energy companies that provide liquid fuels or natural gas as well as those which provide electrical energy. There is no need for a “grid” to supply electricity. We could each have our own inexpensive, non-polluting electrical energy source. 40 - 50 KW units have been built, tested and demonstrated. Govt confiscates. This is suppression by an evil govt. Such suppression is not new - it happened to Tesla in 1889.
“Free market”
Free market is the solution - and this has to mean that ALL alternative energy forms be allowed without Govt interference or suppression.
There are energy solutions that require no fuel. I have seen them in operation. The govt suppression of all of these has kept us at the mercy of the energy companies that provide liquid fuels or natural gas as well as those which provide electrical energy. There is no need for a “grid” to supply electricity. We could each have our own inexpensive, non-polluting electrical energy source. 40 - 50 KW units have been built, tested and demonstrated. Govt confiscates. This is suppression by an evil govt. Such suppression is not new - it happened to Tesla in 1889.
It’s perfectly accurate.
The oil industry is not expanding it’s refinery capability at a rate equal to or faster than the consumer’s increase in demand.
And so the price continues to climb.
So what if the oil companies have expanded their refineries... they have not expanded them to match our demand.
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