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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (120777)	6/18/2005 9:35:18 PM
From: LindyBill	Read Replies (1) \| Respond to of 793854

The counter point is that of one who sees the US sinking into the shadow of an ascendant China - a political result they would likely prefer. China is still a baby compared to us. The "political result" concept is used by the "hate America" crowd and the doomsayers.

To: Bearcatbob who wrote (120777)	6/18/2005 10:11:04 PM
From: Snowshoe	Read Replies (1) \| Respond to of 793854

>>The counter point is that of one who sees the US sinking into the shadow of an ascendant China - a political result they would likely prefer.<< Not at all. I just think that the compelling needs of developing countries like India and China will prompt them to outbid the US for the marginal extra supply. The different grades of oil are not mutually fungible. The heavy sour crude will go wherever the refineries are that can handle it, and more of these are already being built in India and China. A heavy sour crude refinery costs 5 times more than a light sweet crude refinery of equivalent capacity. It's a massive multi-billion dollar investment. The US has a better choice of options, like conservation and ethanol. US consumers are already ditching SUVs for more fuel efficient vehicles. Given our huge base this can make a noticeable difference vs. the marginal extra supply otherwise needed. You may not like it, but the US is building lots of ethanol refineries that are going to be supplying 10% of our gasoline. China has much lower potential for ethanol than the US, because all the available farmland is need for growing food. I think you'll have a tough time promoting new oil refineries in the US.