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Originally Posted by oldtimer What high demand are you talking about JJA?, have you actually looked at the oil market or are you just assuming?
Saudi Arabia alone is having 400,000 barrels a day of oil that they can't sell.
The oil prices are NOT about high demand. |
...then what are they about then...because every oil company, oil analyst, and every foreign government are citing "high/increased demand" as the reason for justifying the higher prices.
...Saud Arabia may have 400K extra barrells a day they can't sell, but it doesn't matter to the US because the oil coming out of Saudia Arabia right now is so dirty, the old refineries in the US cannot process the crude.
The problem in the US is more a function of limited refining capacity than it is supply. There has not been a new refinery built in the US in over 25 years. There is much cleaner, cheaper technology out there that could get the job done, but no company in their right mind would consider building a new refinery in the US because of the EPA and the environmentalists. It's just too much hassle.
I saw a special on Discovery Channel or something like that about US oil refineries. Basically it said that the older refineries in the US are only capable of processing certain types of crude and that much of the cheaper crude available today is incompatible with the technology here in the US.