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Politics : Al Gore vs George Bush: the moderate's perspective
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To: John Carragher who wrote (3551)10/24/2000 8:10:56 PM
From: Ben Wa  Read Replies (1) of 10042
 
actually, your reasons for high oil prices are incorrect. Oil prices are high due to:
1. Oil tanker shortage - Tanker rates are going up and up. Older tankers are being scrapped because of environmental regulations faster than new ones are being built. If Saudi Arabia pumped 10 trillion barrels of oil a day, you would still need to transport it.
2. Oil Refinery shortage - when was the last time you heard of a new refinery being built? They are all operating at capacity!
3. The "easy" oil and gas is basically gone from the continental US, due to poor energy policy of the US.
4. China's economic growth has caused their imports to take oil from global supply - their growth has been very fast. In addition, their industry and power infrastructure in very inefficient, so they do not use oil efficiently.
5. In the US, the laws that describe gasoline composition vary from state to state, which is crazy. That reduces competition between refineries.
6. The huge majority of new electric plants are designed to burn natural gas, so watch for natural gas prices to keep high levels.
So, the gas & exploration companies look for oil and gas wherever they can - which is what they are supposed to do.
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