[Ansteorra] Re: gas prices too high...sorry had to share this
Michael Silverhands
silverhands at sbcglobal.net
Fri Apr 21 13:15:57 PDT 2006
On Apr 21, 2006, at 2:57 PM, Cairenn Day wrote:
> Opening ANWAR will not do much to reduce prices. ...
> By the way, there are plugged wells that are being redrilled
> (sometimes
> to another producing horizon) here in the US. It is now reasonable to
> do this. ...
>
> Cairenn, the Howling Artist
True, but there is actually already more oil on the US market than we
can bring to the pump. The limiting factor is onshore refineries. The
ones we have, as I mentioned previously, are operating at or near
capacity. It would take years to build more refineries and bring them
online -- even if there were plans in the works to build more of
them, and there aren't.
The simple fact is that we find ourselves in the ludicrous position
of shipping refined fuel home by ship from overseas. (That runs the
distribution costs out the roof.) This is simply because our demand
has not gone down, but the global supply has. India and China are now
consuming as much as we used to. Soon, China will probably be
consuming more than us.
The only thing we can do about this is to build more onshore
refineries (which, as I said, isn't going to happen soon, if at all)
or consume less fuel. In reality, that is the only option. We can
either do it voluntarily to try to get our economy (both national and
personal) back under control. Or we can do it involuntarily because
we simply can't afford to pay the price at the pump. But either way,
that's what has to happen.
Michael
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