AI
Friday, September 23, 2005 6:51:55 PM
Because there is more oil that we know what to do with right now.
the world is bleeding it as we write. OPEC spends days debating the release of a 500k barrels here or 500k barrels there but the reality of it is that the infrastructure we have in place supports our existing demand if you strictly look at it based on the number of barrels of oil we produce and the number of barrels that we consume on a daily basis.
Where is gets problematic and what has been the result of all the problems refinement of oil has been the choke point for the last 15 years. Over the years of living excessively wealthy in the 1980-1990s we did not maintain an operation efficiency and continued to grow out energy demand which fighting tooth and nail to keep refineries from being built. It's like when they want to put in some kind of massive shopping center right next to your neighborhood. Sure it brings tremendous revenue, but not in my backyard. It lowers my property values, causes pollution, and the traffic becomes an inconvenience. When you get an entire country fighting the industrialization of their town or neighborhood the next result is what we have today. No new refineries in 30 years and the existing refineries expanded to their limits.
We have two choices, the easiest is to legislate the building of new refineries, which is already happened, or the efficiency of our energy utilization. The rise in oil prices is used as an excuse to develop the capital to develop refineries. The problem was that the rise in oil prices was the result of economic expansion in Asia and Eastern Europe.
Oil companies found that instead of investing in building out refineries they needed to spend the increased revenues in exploration and development of oil and gas fields. If they didn't they would loose market share, and they DID. The oil companies were Johnny come lately to the party of Russian and Chinese oil and gas corporation which were laying stake to and developing field in their countries and making partnerships with those in SE Asia, South America the Baltics and with themselves. Add ti that Americans apprehensions to building out our refineries and there you have it. No investment in refineries.
Oil and Gas companies need to act on a global scale and they are not tied so tightly to any one nation or consumer when there are 6 billion plus around the world. As a means of revenue generation the refinery choke point kept prices for oil derivatives climbing. Plus with this being a free market and all, to protect their supplies of gasoline from export other countries that are not in expansion phases end up raising wholesales prices and one of the driving factors in energy prices going up across the board. Oil\Gas and their derivatives.
They can pull the caps off a hundred wells and it will do little good others than drop the price of oil which would leave gasoline prices floating high. Then the jig is up in that the common boob tube watching American would realize its a refinery problem. After all most Americans still think there is not enough oil to go around.
the world is bleeding it as we write. OPEC spends days debating the release of a 500k barrels here or 500k barrels there but the reality of it is that the infrastructure we have in place supports our existing demand if you strictly look at it based on the number of barrels of oil we produce and the number of barrels that we consume on a daily basis.
Where is gets problematic and what has been the result of all the problems refinement of oil has been the choke point for the last 15 years. Over the years of living excessively wealthy in the 1980-1990s we did not maintain an operation efficiency and continued to grow out energy demand which fighting tooth and nail to keep refineries from being built. It's like when they want to put in some kind of massive shopping center right next to your neighborhood. Sure it brings tremendous revenue, but not in my backyard. It lowers my property values, causes pollution, and the traffic becomes an inconvenience. When you get an entire country fighting the industrialization of their town or neighborhood the next result is what we have today. No new refineries in 30 years and the existing refineries expanded to their limits.
We have two choices, the easiest is to legislate the building of new refineries, which is already happened, or the efficiency of our energy utilization. The rise in oil prices is used as an excuse to develop the capital to develop refineries. The problem was that the rise in oil prices was the result of economic expansion in Asia and Eastern Europe.
Oil companies found that instead of investing in building out refineries they needed to spend the increased revenues in exploration and development of oil and gas fields. If they didn't they would loose market share, and they DID. The oil companies were Johnny come lately to the party of Russian and Chinese oil and gas corporation which were laying stake to and developing field in their countries and making partnerships with those in SE Asia, South America the Baltics and with themselves. Add ti that Americans apprehensions to building out our refineries and there you have it. No investment in refineries.
Oil and Gas companies need to act on a global scale and they are not tied so tightly to any one nation or consumer when there are 6 billion plus around the world. As a means of revenue generation the refinery choke point kept prices for oil derivatives climbing. Plus with this being a free market and all, to protect their supplies of gasoline from export other countries that are not in expansion phases end up raising wholesales prices and one of the driving factors in energy prices going up across the board. Oil\Gas and their derivatives.
They can pull the caps off a hundred wells and it will do little good others than drop the price of oil which would leave gasoline prices floating high. Then the jig is up in that the common boob tube watching American would realize its a refinery problem. After all most Americans still think there is not enough oil to go around.
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