 KrKHeavy Artillery For The Little GuyPremium
join:2000-01-17
Tulsa, OK
 ·AT&T DSL Service
| Yes, those are true statements... However, there is still not a shortage of oil at the moment. Did you know that we actually have been exporting fuel to Europe and Asia because it's more profitable? Did you know that Oil tankers full of oil often wait for MONTHS parked offshore to dock at the port and offload? (for timing reasons, not due to traffic etc)
Check this out:
January 2008, we exported:
364,000 barrels of crude oil.
4,095,000 barrels of gasoline
1,900,000 barrels of kerosene
10,398,000 barrels of Fuel Oil
Plus tons of byproducts, natural gas products, other petrochemicals, etc etc yadda yadda.
Why did we do that if we have such a shortage? Because we don't really, and they got a higher price from overseas buyers....
Almost all the oil refining and distribution in the USA is now in the hands of just a few, giant players. They can control the supply, and keep stocks tight for economic gain without actually running out of fuel which would cost them money and cause panic.
As for domestic oil production, it's surging. At $120 a barrel those old slow wells are now goldmines again. The boom is apparent. Lots of people with old oil leases or mineral rights are really getting a windfall atm.
As for the refineries, they aren't trying to build new ones... increasing the supply of refined fuels would drive the price down. In fact they actively shutdown old facilities or idle them, even now.... However, they are expanding and modernizing many facilities as well... the oil industry is experiencing a massive boom in construction and expansion at the moment, driven by the record profits.
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) |
