A recent report shows the energy bill being negotiated between the House and the Senate would dramatically increase energy (including gasoline) prices. Economic research firm CRA International found that congressional proposals would more than double the cost of petroleum products - if you don't like oil at $100 per barrel you will really hate it at $200 per barrel.
It should come as no surprise that Congress would make matters worse. After all, they are partly to blame for our current situation. Building new oil refineries or expanding existing ones is among the most affordable, effective and reliable ways to increase supplies and lower prices. Yet emissions controls and mandates for specific gasoline blends have forced many refineries to close and made building new oil refineries very difficult. In fact, no new ones have been built in the U.S. for nearly 30 years.
For example throughout the 1990s, the oil industry spent nearly 25 percent of capital investment - more than $100 billion - to comply with environmental regulations. For some plants, compliance with ever-increasing standards was simply too costly. For instance, oil refiner Premcor shut two Illinois oil refineries because it could not afford required upgrades. Modifications in one refinery alone would have cost $70 million.
Tuesday, January 29, 2008
New oil refineries needed
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2 comments:
One of the reason's I've been hearing for the oil shortage is that there is a shortage of trained people to run the rigs.
Interesting. I have not heard that - but it does not surprise me. More than anything it kills me that we have the solution to our shortage problems right here off our own coast - a solution that if we ourselves do not tap - China, Cuba, and myriad others are willing to utilize. We need to break the strangle hold the enviro-weenies have on our energy policy and get to work meeting our own oil needs.
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