Gas Prices? Who's Fault?

[kal-el]

I find it funny that we used to blame Jimmy Carter for the gas price spikes, and now we aren't holding W accountable.

 

[BWG]

I find it funny that we used to blame Jimmy Carter for the gas price spikes, and now we aren't holding W accountable.

I think it's called selective memory. I'm not pointing any fingers at Bush, family and friends, but you might recall that their business background is oil. Giant oil companies just reported huge profits and that was before gas prices started to dramatically rise. The recent energy bill just passed (also known as oil company welfare) gave them billions more.

I guess it's nice to have a friend in government, but I don't have hundreds of thousands of dollars for campaign contributions or golf outings in Scotland. All I have is one lonely vote, but they don't seem too interested in that except every couple of years...Oh well I keep trying.

 

[epr64]

I think to blame the American people for the problem of high oil and gas prices really misses the mark. Having said that I think I know who is to blame:

Every Democrat and Republican in Congress and those who are called party leaders. Where have they been for the last 2, 4, 6, 10, 30 years? Didn't they see this problem coming? Didn't they ask? Why have CAFE Standards if they aren't seen, addressed, adjusted or even used? What does your Congressman say he has done to deal with a problem we saw coming? Petrol in Europe has been over $5 a gallon (USD) for years. No one noticed?

How about the auto makers? Want another Hummer in the driveway? Where are the low end cars just for transportation? Wouldn't that save gas?

You can't blame the environmentalist organizations who have spent millions on attorneys and law suits for everything from tiny fish and frogs to "death to the smokestack". Some here think they line the pockets of Republicans and Democrats and that's true because Republicans and Democrats are used to having their pockets lined. You can't get elected without votes and MONEY. Ever vote? Best one out of 2? And the best we can do is a Democrat or Republican? Sheesh

Oh and you all know that home heating oil season is just around the corner and the price per gallon of that gold liquid is going through the roof for the last 4 months and will keep it up. Just wait til they start burning it. Best thing to do is pray for global warming.

Then there is the stuff they put in gas. MTBE instead of LEAD instead of research. Just gotta placate someone but when they started finding poluted wells in the Pomona Valley well then they decided to look at MTBE. By that time they had a good supply. They just pumped it out of the ground. By the way, congress just approved and the President signed legislation so the oil companies can't be sued over MTBE. Why? Want $7 gas? (it's going there anyway).

THE PRICE OF GAS WILL NEVER COME DOWN. Even though Saudi Arabia said it would be happy with $25 a barrel just 2 years ago that was 2 years ago. Saudi Arabia pumps 10.4 million barrels of oil into the market every day. The world uses 85 million barrels a day and that will be 87 million by next year.

Remember the Rabbit? Remember the Yugo? Remember the Beetle? One day they will say, "Remember the Explorer?" :duel

Good point. And let's not forget the other big donators to the Dems and Reps: the oil industry. Why so many SUVs? Why nearly no progress in hydrogen cars? Why are solar panels so minimally used? Why don't we have a lot of non-pollutiong, non-oil dependent energy sources?

Everyone knew that oil would stop flowing one day or another, but the West just didn't care.

NOW... The day there's no more oil because we burnt it in our cars and home warming, HOW will we produce plastics (one of the basis of our technology)?

Me thinks it's WAY time that the big oil is sent back to its games, and that wse start developing real alternatives to oil, gas and nuclear energy.. and FAST.

Just my opinion.

CU
Y

 

[gordontravels]

From the Department of Transportation today: Refinery capacity down; major reason for higher prices at the pump.

us.gov. :duel

 

[gordontravels]

I made no assumption - you already took this action in post#68:
http://www.debatepolitics.com/showpost.php?p=66342&postcount=68

And, you continue to do so, by assuming that I have not read the thread, or am too young, etc:

and
(PS - my birthdate is in my profile, should you care to do a little "research" before you post)

All this because I asked you a question? And your response?

Well, if you just "don't do that," then you are skipping a rather fundamental point of debate. Instead, you just want to monologue. Big deal.

Well, of course you like it here, if you are never burdened with backing-up your claims. You get points for opening the topic, though.

At least CJ and other thread participants have made some sound arguments.

I like it here too.

Sorry but last thing I want to do is look at profiles. It's hard enough sometimes just to understand a poster's mind in the words he prints. As to you being "young". It was speculation on my part and if you are or aren't makes no difference in your opinion. When I was "young" I was never wrong except in the eyes of some others.

As for backing up my claims there are 30 years of environmentalist causes and a trail of lawsuits to find. Go to their sites and see. Ask the questions just as you would from me. I am not staring at a single article which I have explained and you won't fine your information in the pages of the New York Times nor on CBS. There are no refineries built since 1976. Doesn't that say something to you knowing the population of our country has increased in the last 30 years as have the vehicles on the road?

You may want to use an argument that oil companies held off on building so they could get more for their product but that put them in the position of not making the product in the first place. No business runs that way but then, why wouldn't they build?

Don't be so thin skinned. I went back to #68 and found no attack on you. Want to point it out? And we both like it here and that's good. :duel

 

[Stoneripple]

When I was "young" I was never wrong except in the eyes of some others.

Then you must still be young at heart.

The problem we have is that you refuse to provide any support. The question isn't whether or not data and sources are available, of course they are. The burden on you is to specify those which support your interpretation of the facts.

 

[Stoneripple]

Good point. And let's not forget the other big donators to the Dems and Reps: the oil industry. Why so many SUVs? Why nearly no progress in hydrogen cars? Why are solar panels so minimally used? Why don't we have a lot of non-pollutiong, non-oil dependent energy sources?

Careful - you sound like one of those environmentalists that many here claim are responsible for high gas prices.

 

[Stoneripple]

Statistics in the report located here:
http://www.eia.doe.gov/emeu/steo/pub/contents.html

indicate that the strongest factor influencing gasoline prices is still the demand vs production of crude oil. Not refineries, and not environmentalists...

US refinery capacity is mentioned only with regards to our inability to handle natural disasters. Refinery capacity is thin, operating in the 90% range, but not the primary, or even secondary factor for high oil prices this summer.

Several factors are contributing to the expectation of continued high crude oil prices. First, worldwide petroleum demand growth is projected to remain robust during 2005 and 2006, although not as strong as in 2004. Worldwide oil demand growth is expected to average about 1.8 million barrels per day between 2004 and 2006, a 2.1-percent annual average increase compared with 3.2 percent in 2004. This represents a downward revision from the previous Outlook’s annual growth rate of 2.5 percent in 2005 and 2006. One reason for the lower demand growth projection is the re-assessment of Chinese demand growth in 2005 in response to recent data for the first half of 2005. Chinese oil demand growth, estimated at almost 1 million barrels per day in 2004, is projected to grow more slowly at an annual average of 0.5 million barrels per day in 2005 and 2006. This is down slightly from an average of 0.6 million barrels per day for 2005 and 2006 in the previous Outlook.

Second, production growth in countries outside of the Organization of Petroleum Exporting Countries (OPEC) is not expected to accommodate incremental worldwide demand growth. Non-OPEC supply is projected to grow by an annual average of 0.7 million barrels per day during 2005 and 2006, below the annual average growth rate seen in the 2002 through 2004 period. Third, worldwide spare production capacity is at its lowest level in three decades; in practice, only Saudi Arabia has any spare crude oil production capacity available, and the Saudis would need to steeply discount their heavy oil in order to market it effectively. Despite projected capacity additions in Saudi Arabia and other Persian Gulf countries in 2005 and 2006, world spare capacity will remain low if world oil demand continues to grow as projected. Fourth, downstream sectors, such as refining and shipping, are expected to remain tight. Finally, geo-political risks, such as the continued insurgency in Iraq and possible problems in Nigeria and Venezuela , are expected to keep the level of uncertainty in world oil markets high.

A factor that could influence the U.S. oil market over the next few months is the severity and location of hurricanes. On August 2, NOAA increased the number of expected hurricanes in 2005 to between 9 and 11 (including Dennis and Emily), with at least 5 to 7 being major hurricanes. While there has already been an active storm season (7 tropical storms including 2 two major hurricanes), the bulk of the activity is still expected to occur during the peak months of August-October. According to NOAA, this may be one of the most active hurricane seasons on record for the Atlantic . With limited spare global crude oil production capacity and U.S. refinery utilization rates in the upper 90-percent range for much of the summer, oil prices are likely to react strongly to any disruption of or damage to petroleum infrastructure. How long prices remain elevated due to a particular storm, however, will ultimately be determined by the severity of damage to petroleum facilities.

For non-governmental interpretation of these statistics, a relevant story has appeared in the current issue of Time magazine.

(PS: is that so terribly difficult, Mr GT? Or would you prefer a few smilies and loud fonts?)

 

[C.J.]

If I understand the arguments, CJ and Cnredd blame environmentalists for high gas prices. Gordontravels seems to be blaming everybody, which is at least easy to keep consistent.
For the former arguments, the claim is, in a nutshell:

Environmentalists caused refineries to be decomissioned, and have prevented the building of new refineries.​

I will not speak for Cnred, but it's not my position to blame environmentalists for high gas prices. Environmental concerns are but one piece of the price puzzle.

To support this, you will have to show that the decomissioned refineries were, in fact, still safe, efficient and operational. How old were they, and what was their safety record, for example? Many types of industrial sites are decomissioned as part of their normal lifetime, exclusive of environmentalist actions.?

No need in me supporting a position I do not hold in its entirety, but I will say one thing. If the cost of upgrading, or keeping a refinery safe and efficient is more than a company believes will allow them to be profitable, for any reason, they simply will not put out the capital to do so.

The claim that environmentalists have prevented building of new refineries is unfounded. Environmentalists do not make law - congress does. Congress has not passed a federal law halting refinery development, to my knowledge. In fact, CJ has volunteered that some permits have been passed for new US refineries.

I never made that claim, but again I will say one thing. Congress passes laws and the courts enforce them. There are many examples of congress passing laws and the courts not allowing something because of the law, so indirectly congress did halt something. You can find many examples of where the courts disallowed refineries, or disallowed expansions because of laws Congress passed. For instance when BP attempted to double its Puget Sound refinery with a new dock, the Ninth Circuit COA ruled against them, in a suit brought by Ocean Advocates and other environmental groups under a 27 year old federal law. Environmentalists said it could be a first step in forcing BP to significantly scale back its crude-oil shipments and there would be a significant reduction in the risk of an oil spill.

The argument seems to be that the red-tape involved in building a plant costs too much money. CJ claims that 19 new refineries could be built if there was no environmental regulation. Cnredd seems to support the opposite of NIMBY, presumably allowing government to take land for refinery use, if necessary (although he hasn't proposed such an extreme, it follows from his post).

Therefore, is the argument that there should be no environmental regulations, so that the US can build refineries, and help lower the cost of gas?

Nope, not my argument at all, again not speaking for Cnred. In fact I stated: "That said, I believe it would be very unwise to build refineries with no environmental consideration, but we should be aware that due to them it will cost more, and oil companies will resist building them unless there is sufficient profit motive."

 

[gordontravels]

Then you must still be young at heart.

The problem we have is that you refuse to provide any support. The question isn't whether or not data and sources are available, of course they are. The burden on you is to specify those which support your interpretation of the facts.

I disagree. When the facts as you say are so historical and I am speaking of the actions for the last 30+ years of the environmental movement, then it is impossible to have missed it. To try to cite one instance is futile but I did cite two examples of the opposition to oil refineries; The Nature Conservancy and the Sierra Club. Their websites will tell you volumes.

How about this. Look at Anwar and project backwards. The only argument against Anwar is environmental. That's the way it's been for decades and that was what I was saying. Take it as my opinion but imagine the scenario here. I'm saying the environmentalists have fought the oil companies at every step with their bought and paid for politicians and you want me to prove it? Amazing (not an attack but upon my senses). :duel

 

[shuamort]

Whose fault is it for the price of gas? Why the jews of course! (Just kidding, surprised no one has gone there yet).

It really is a multi-faceted problem and with one group pointing the finger at others, it just turns out they're all to blame. The environmentalists, the lobbyists, the politicians on both party lines, consumers, OPEC, the oil companies, other countries like China whose consumption has increased, and more. I haven't seen "inflation" mentioned yet (although, it would just be a small factor, it's still relevent).

What's needed, instead of blame, are short-term AND long-term solutions.
Short term would include allowing refineries to open. Removing gas taxes. Removing restrictions regarding competitive pricing*, and applying pressure on OPEC to lower prices.
Long term would include demanding less dependence on oil and finding alternative fuel sources.



*Competitive pricing restrictions are being enforced in Minnesota.

 

[cnredd]

I will not speak for Cnred, but it's not my position to blame environmentalists for high gas prices. Environmental concerns are but one piece of the price puzzle.

That's what I was saying.....but you're not speaking fo me, right?:2wave:

This is no ONE answer...

 

[C.J.]

That's what I was saying.....but you're not speaking fo me, ...

Absolutely not!

This is no ONE answer...

That's right also.

 

[gordontravels]

Whose fault is it for the price of gas? ]Why the jews of course! (Just kidding, surprised no one has gone there yet).

It really is a multi-faceted problem and with one group pointing the finger at others, it just turns out they're all to blame. The environmentalists, the lobbyists, the politicians on both party lines, consumers, OPEC, the oil companies, other countries like China whose consumption has increased, and more. I haven't seen "inflation" mentioned yet (although, it would just be a small factor, it's still relevent).

What's needed, instead of blame, are short-term AND long-term solutions.
Short term would include allowing refineries to open. Removing gas taxes. Removing restrictions regarding competitive pricing*, and applying pressure on OPEC to lower prices.

Long term would include demanding less dependence on oil and finding alternative fuel sources.

Competitive pricing restrictions are being enforced in Minnesota.QUOTE]

Well forget about the inflation thing. Food and Energy isn't figured into the inflation figures by the Fed because if they were they would have to adjust the COLA for Social Security and government workers pay to that reality and try to get politicians to look at reality.

Inflation will come along later on when the cost of fuel really gets up there and then business has to pass it along to us. I find it interesting that those such as Wal-Mart have decided not to pass the costs of energy on to us the cuss tomers. Makes me wonder what we were paying at Wal-Mart for all those Chinese goods and why? :duel

 

[Stoneripple]

Nope, not my argument at all, again not speaking for Cnred. In fact I stated: "That said, I believe it would be very unwise to build refineries with no environmental consideration, but we should be aware that due to them it will cost more, and oil companies will resist building them unless there is sufficient profit motive."

C.J., You are right. I did a poor job discriminating between your post and cnredd's in my replies. Your positions are not the same, and did not intent to propose that they were. Your points are well made.

 

[Stoneripple]

What's needed, instead of blame, are short-term AND long-term solutions.

Agreed, probably by everyone in this thread.

However, the position was made that the reason for short-term price hikes was primarily the lack of refineries. I haven't seen good support of that, even though refinery capacity is certainly one factor. The DOE/EIA cites crude oil supply as leading cause in the article I posted earlier.

It was also proposed by some that environmentalists were the reason no refineries have been built. I tend to believe the evidence supporting C.J.'s statement is stronger - there is too little profit incentive to build refineries.

Is that all due to environmentalists?

 

[Stoneripple]

Is that all due to environmentalists?

No, because there are additional regulations from non-environmental agencies such as OSHA. The federal government has just issued an "urgent safety recommendation" to BP regarding the safety of their refinery in Texas.

This was not because of environmental regulations, but because the company allowed 15 employees to die, and 170 injured at their plant.
(SOURCE: Chemical and Engineering News, Vol. 83, No. 34, August 22, 2005.)

Oil companies seek weak overseas safety regulations, as much or more so than environmental regulations. That is another reason why too few refineries have been built.

Is anyone proposing that the BP cite was, in fact, safe, and that worker safety should also take a back seat so that we can continue to drive cheaply?

 

[gordontravels]

And now it's on the doorstep; home heating oil season. Many refineries will soon be switching over to the production of heating oil and there will be less capacity to produce gasoline.

Analyst reports out today (most business sections of newspapers you hold in your hand and read) say high oil per barrel and gas by the gallon prices should stay that way or go higher for the next 2 to 3 years.

Some are saying that oil (today 67.70 per barrel) will then come down to 50.00 to 55.00. I really doubt this and some of those fringe analysts are saying a barrel of oil is on it's way to 80.00 to 120.00 per barrel. PROBLEM IS: Those fringe analysts are the ones that have been right most of the time when it comes to tracking the market.

Last I heard, home heating oil was ready to touch 1.90 per gallon. I would imagine that this is an average so it may be much higher in certain areas. If you heat with any delivered product such as home heating oil or propane, buy it now. Waiting will show you a higher price.

High gasoline prices are here to stay and it is just beginning to affect everything from Wal-Mart to getting to work. I would be interested in how employers are going to handle their workers getting the same pay and paying double to get to work. If employers address that in higher wages, where do you think the money will come from?

Gosh, pretty soon gasoline will be as expensive as spring water. We live in interesting times. :duel

 

[stsburns]

And now it's on the doorstep; home heating oil season. Many refineries will soon be switching over to the production of heating oil and there will be less capacity to produce gasoline.

Analyst reports out today (most business sections of newspapers you hold in your hand and read) say high oil per barrel and gas by the gallon prices should stay that way or go higher for the next 2 to 3 years.

Some are saying that oil (today 67.70 per barrel) will then come down to 50.00 to 55.00. I really doubt this and some of those fringe analysts are saying a barrel of oil is on it's way to 80.00 to 120.00 per barrel. PROBLEM IS: Those fringe analysts are the ones that have been right most of the time when it comes to tracking the market.

Last I heard, home heating oil was ready to touch 1.90 per gallon. I would imagine that this is an average so it may be much higher in certain areas. If you heat with any delivered product such as home heating oil or propane, buy it now. Waiting will show you a higher price.

High gasoline prices are here to stay and it is just beginning to affect everything from Wal-Mart to getting to work. I would be interested in how employers are going to handle their workers getting the same pay and paying double to get to work. If employers address that in higher wages, where do you think the money will come from?

Gosh, pretty soon gasoline will be as expensive as spring water. We live in interesting times. :duel

If we are really in Iraq for oil, the supply would be high, and prices would be cheap? But the sad thing is prices are not cheap, Business wise this it is illogical? Why?

Entreprenurship I (High School):

If the supply is low, the demand is high, thus prices are high.
If the supply is high, the demand is low, prices are low.

This is High School business class general information, you couldn't pass the class without knowing this information. That is why this argument doesn't compute. :comp:

 

[gordontravels]

If we are really in Iraq for oil, the supply would be high, and prices would be cheap? But the sad thing is prices are not cheap, Business wise this it is illogical? Why?

This is High School business class general information, you couldn't pass the class without knowing this information. That is why this argument doesn't compute. :comp:

The price of gas? The world produces 84 million barrels of oil a day. Refinery capacity world wide is around 84 million barrels a day. When you have refinery problems as we have had this year the price is going to go up along with speculation that spurs rising prices. Add in China and India who are beginning to compete for that oil and hey.... high prices. Otherwise my previous post is beyond High School and based on the markets and the business that is going on today, not my speculation. When you have winter coming you won't be making as much gasoline because you will be making heating oil. This isn't rocket science but even the rockets need fuel.

Iraq decides who to sell their oil to and whoever buys it pays the world price. Glad you went to High School. Helps doesn't it. :duel

 

[Stoneripple]

If you heat with any delivered product such as home heating oil or propane, buy it now. Waiting will show you a higher price.

This is sound advice. On this, we agree completely!

 

[stsburns]

The price of gas? The world produces 84 million barrels of oil a day. Refinery capacity world wide is around 84 million barrels a day. When you have refinery problems as we have had this year the price is going to go up along with speculation that spurs rising prices. Add in China and India who are beginning to compete for that oil and hey.... high prices. Otherwise my previous post is beyond High School and based on the markets and the business that is going on today, not my speculation. When you have winter coming you won't be making as much gasoline because you will be making heating oil. This isn't rocket science but even the rockets need fuel.

Iraq decides who to sell their oil to and whoever buys it pays the world price. Glad you went to High School. Helps doesn't it. :duel

Yes, their are other countries we have to compete with to get the gasoline. Also due to the recent hurricane in Louisiana, what many people don't know is that their are many oil drills and pumps in that state. Not only off the coast but on the mainland too. But even weather can affect gas prices. :duel

 

[ALiberalModerate]

The price of gas? The world produces 84 million barrels of oil a day. Refinery capacity world wide is around 84 million barrels a day. When you have refinery problems as we have had this year the price is going to go up along with speculation that spurs rising prices. Add in China and India who are beginning to compete for that oil and hey.... high prices. Otherwise my previous post is beyond High School and based on the markets and the business that is going on today, not my speculation. When you have winter coming you won't be making as much gasoline because you will be making heating oil. This isn't rocket science but even the rockets need fuel.

Iraq decides who to sell their oil to and whoever buys it pays the world price. Glad you went to High School. Helps doesn't it. :duel

Of all of the right wing propaganda talking points, the “The reason gas prices are so high is that the environmentalists have kept oil companies from building refineries” has got to be in the top 5 of the most ludicrous ones.

Environmentalist and Conservationist groups (The Good Guys) collectively spend at best 2 maybe 3 percent as much as Big Oil (The Bad Guys) spend lobbying Congress each year. They conduct a few letter and email campaigns a year while Big Oil spends hundred of millions of dollars each year buying votes.

If Exxon, which buy the way was the most profitable company in the history of civilization last year, wanted to build more refineries, it would find some nice poor depressed area and build them. Of course then if they did that, the price of gas might go down and they wouldn’t make as much money.

 

[aquapub]

Contrary to what some unthinking, class-warfare conspiracy theorists on the left might speculate, there are real answers to the question of why gas prices are so high (and with Hurricane Katrina, why they are only going higher).

For those who do not understand the futures market, it is where companies who rely heavily on fuel prices can buy a contract to get their petrol at the fixed, current rate for so much time. When companies get worried about instability with oil distribution, they buy up futures, which is one of the things that drive up gas prices.

According to the Congressional Research Service (a branch of the Library of Congress which did the research from which the landmark 2005 energy bill was passed) these are the substantive issues behind the hikes:

-Decisions by the Organization of Petroleum Exporting Countries (OPEC)
cartel, after having reduced production quotas in 2002, to raise them only
slowly and reluctantly;

-Unexpected demand growth in China;

-Disruptions in oil production in major exporters, including Venezuela, Iraq
and Nigeria;

-Decline in the value of the U.S. dollar, the currency in which oil is traded in
the world market, compared to other major currencies, particularly the Euro.

-Uncertainty and fear of major disruptions in Iraq and Saudi Arabia, in the
context of the war in Iraq and the threat of terrorism.

-U.S. demand for gasoline has increased as economic growth has resumed.

-Domestic refining capacity has declined, both in number of refineries —
from 324 in 1981 to 153 in 2002 — and in total capacity — from 18.62
million barrels per day (mbd) in 1981 to 16.78 mbd in 2002.

-The structure of the refining industry has changed. In 1981 most refining
capacity was owned and operated by integrated oil companies that supplied their own crude oil, refined it, distributed it, and marketed the products.
Refining was only one part of the company’s profit-making operation, and
frequently was not an important profit maker. Now the refining industry is
characterized more by independently owned, nonintegrated firms. When
refineries are the sole source of revenue to the owners, it becomes more
important that the operation be profitable, leading to pressure to raise prices.

-The refining industry has been operating with lower inventories of both
crude oil and gasoline, as a means of cutting costs. The side effect has been
reduced ability to meet unanticipated demand, leading to greater price
pressure.

-Gasoline markets are fragmented regionally because air quality requirements
have led to numerous different formulations to meet varying standards. In
meeting demand for these regional formulations, called “boutique fuels,”
refiners lose flexibility to meet local variations in demand elsewhere,
leading to increased price pressure.

-With domestic refining capacity constraints, a greater proportion of gasoline
demand is being met with imported products. Foreign refiners typically
manufacture products designed to sell in the international market, not the
special product “boutique fuels” demanded by a significant share of the U.S.
market.

-Refiners have had increased costs in the past year to comply with new
requirements to limit sulfur content and to switch from the oxygenate
additive MTBE to ethanol.


This is what is actually going on. Let liberals swim in their baseless invective against Bush and his mythical, "oil buddy," Disney villain plot to plunder the world all they want. These are the facts.

 

[ALiberalModerate]

Contrary to what some unthinking, class-warfare conspiracy theorists on the left might speculate, there are real answers to the question of why gas prices are so high (and with Hurricane Katrina, why they are only going higher).

For those who do not understand the futures market, it is where companies who rely heavily on fuel prices can buy a contract to get their petrol at the fixed, current rate for so much time. When companies get worried about instability with oil distribution, they buy up futures, which is one of the things that drive up gas prices.

According to the Congressional Research Service (a branch of the Library of Congress which did the research from which the landmark 2005 energy bill was passed) these are the substantive issues behind the hikes:

-Decisions by the Organization of Petroleum Exporting Countries (OPEC)
cartel, after having reduced production quotas in 2002, to raise them only
slowly and reluctantly;

-Unexpected demand growth in China;

-Disruptions in oil production in major exporters, including Venezuela, Iraq
and Nigeria;

-Decline in the value of the U.S. dollar, the currency in which oil is traded in
the world market, compared to other major currencies, particularly the Euro.

-Uncertainty and fear of major disruptions in Iraq and Saudi Arabia, in the
context of the war in Iraq and the threat of terrorism.

-U.S. demand for gasoline has increased as economic growth has resumed.

-Domestic refining capacity has declined, both in number of refineries —
from 324 in 1981 to 153 in 2002 — and in total capacity — from 18.62
million barrels per day (mbd) in 1981 to 16.78 mbd in 2002.

-The structure of the refining industry has changed. In 1981 most refining
capacity was owned and operated by integrated oil companies that supplied their own crude oil, refined it, distributed it, and marketed the products.
Refining was only one part of the company’s profit-making operation, and
frequently was not an important profit maker. Now the refining industry is
characterized more by independently owned, nonintegrated firms. When
refineries are the sole source of revenue to the owners, it becomes more
important that the operation be profitable, leading to pressure to raise prices.

-The refining industry has been operating with lower inventories of both
crude oil and gasoline, as a means of cutting costs. The side effect has been
reduced ability to meet unanticipated demand, leading to greater price
pressure.

-Gasoline markets are fragmented regionally because air quality requirements
have led to numerous different formulations to meet varying standards. In
meeting demand for these regional formulations, called “boutique fuels,”
refiners lose flexibility to meet local variations in demand elsewhere,
leading to increased price pressure.

-With domestic refining capacity constraints, a greater proportion of gasoline
demand is being met with imported products. Foreign refiners typically
manufacture products designed to sell in the international market, not the
special product “boutique fuels” demanded by a significant share of the U.S.
market.

-Refiners have had increased costs in the past year to comply with new
requirements to limit sulfur content and to switch from the oxygenate
additive MTBE to ethanol.


This is what is actually going on. Let liberals swim in their baseless invective against Bush and his mythical, "oil buddy," Disney villain plot to plunder the world all they want. These are the facts.

I am not disagreeing with you. My point was and is that the reason no new refineries are being built has little to do with the Sierra Club and everything to do with economics and profit motives.