posted on Oct, 2 2005 @ 01:16 PM
I just read a bit from the guy that writes for Junk Science, an article from 9-29-05 that submits the hypothesis that interference from EPA has a hand
in high gas pricing. He also states that US refineries have dropped from 300+ in the 1970's down to about half of that today. But that our refining
capacity has increased over that same period. This is in large part because of increased refinery efficiency durning this same time frame.
The link is at the bottom of the front page at FOX News. I'm not sure if it's ok to link the article, so I'll leave it to you all to find.
The article is written by Steven Milloy.
I have also recently read an article by a well-known economist who suggests that even for the worse case scenario, that gas prices in relationship
to cost per barrel would make $3.00 a gallon gas be the equivelant to $90.00 a barrel for crude.
It would seem that there is more to the game than meets the eye of the casual observer. The arguement has also been made that releasing the
strategic reserves would drive gas prices down. I have not seen a single bit of evidence that would suggest that this would drop gas pricing. If
refining capacity is maxed then flooding the tank farms is not going to uncrease the volume of refined gas.
There are other considerations in the arguement that don't always get due consideration. Like unenforcable and unrealistic regulations from EPA,
political influence and pressure from environmental PACs, the low return on invest from the building and operating of refineries, the strategic
importance of crude oil and refined products on national security, the arguemnet over the state of oil reserves on the planet, the impact of urban
planning regarding mass transit, and the push for alternative fuel systems and transportation options for the future.
We have a way to go in analyzing these influences. I don't believe for a minute that gas should be $3.00 a gallon. The economic analysis of the
oil industry from point of origin to finish product costs just don't seem to hold up. The regular arguements about peak oil and OPEC don't hold
I'm going to keep searching for more solid evidence until I'm satisfied.
[edit on 2-10-2005 by sharkman]