Wednesday, April 16, 2008

Want Cheaper Gas, Build More Refineries

MSM Stupidity excels when discussing the oil oligarchy, supply and demand and oil pricing. Oil prices are rising because of a) lack of competition(oligarchy) b) no excess production capacity.

Lately McShame suggests compromising gas/diesel tax revenue but doing nothing for the systemic root cause 26% year over year oil price increases. Likewise, Bush and Cheney surf the globe telling producers to produce more, another ludicrous proposition. These are classical 'political' solutions, which don't address the actual root cause of oil pricing problems. So much for Cheneys' vaunted energy task force (the secret meetings with carbon producers and no alternate producersa) and it's alleged benefit for America. Just getting by with a little help for our friends.


if refineries are in the upper 90% of capacity, and can not produce more volume,
price begins to follow the demand curve. Without adding more refineries, there is no competition between the oil producers to win more customers...

Long term we're gonna hit peak oil, Russia announced (in 4/15/2008 WSJ) their fields have passed peak and are now producing less per year.... Hupert peak.. incoming....

Peak oil along with John Robb's terrorism pricing component will drive oil prices upward as well, i.e. as long as America engages in an unsophisticated 1 dimensional war against terror. In the end, oil can only increase in the long term.. barring a terrific shift in supply or a discovery of microbial oil generation.. we've got to pursue alternatives....

Tax incentives to OilCo's aren't required in this marketplace, instead apply the money to grants and research into alternative fuels, power plants, nuclear, wind, solar panels etc.

an oligarchy isn't going to be pressured to apply their resources for the collective good until they are forced to.

Location: san francisco, California, United States

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