HeavyRaines17
Posts: 1857
Joined: Sep.-17th-2007
From: Late-night infomercials
Status: offline
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quote:
ORIGINAL: Tempist Why would you need more refineries in America, when fuel consumption should be decreasing and not increasing (given fuel efficiency and less people willing to drive at high fuel prices). Eastern countries like India, Packastan and China are in need of oil so that is pushing price up but not the price at which oil is standing at. Also parts of America purchase oil from Canada. You cannot make more refineries to drop the price of gas if the price of oil is high. Again, the capacity is there, the low costs aren't. And as for Middle East oil, it doesn't help your cause for getting oil and production up when you're fighting a war. If you want those supplies, then you need to ensure that there will be no disruption in getting it. I'll address your points and my views on them one by one. Why would you need more refineries in America, when fuel consumption should be decreasing and not increasing (given fuel efficiency and less people willing to drive at high fuel prices).- The vacations that people aren't taking and the staying home more does not make up nearly enough of our country-wide fuel consumption. People still need to eat, this food needs to travel to their local grocery store and it travels by semi. Also the food that they eat (mostly meat) needs to be fed as well and there's more fuel. Everything you have to buy is connected to fuel. That's why prices are going up on everything. More refineries would give more supply and with the slightly lower demand, will lower prices. Eastern countries like India, Packastan and China are in need of oil so that is pushing price up but not the price at which oil is standing at. Also parts of America purchase oil from Canada. You cannot make more refineries to drop the price of gas if the price of oil is high. Again, the capacity is there, the low costs aren't.- The price of gas has increased over 40% nationwide in the past year, oil prices have increased 25%. The disparity is because of refineries are not keeping pace. And as for Middle East oil, it doesn't help your cause for getting oil and production up when you're fighting a war. If you want those supplies, then you need to ensure that there will be no disruption in getting it.- Don't disagree with this at all.
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