Home | Business | Pr
Over the last few years we have seen extremely high oil prices and most of this is due to supply and demand and it is not always OPEC, which is doing it to the American citizen. Sometimes it is the fact that we lack refining capability and capacity in the United States. But how can this be you ask as oil companies are making billions in profits?Well, it is simple even if you have the crude oil you must refine it before you can make it into gasoline and then use. If you are using up gasoline faster than the refineries can refine it then the possibility of price spikes is inevitable.Why does this happen you ask? Well, one reason is environmentalists attempt to shut down every big refinery project at the environmental impact level. The environmental impact permits might cost as much as $250 million alone. And that is before you turn a single shovel to get started on the project.If more people understood the need for big refinery projects to keep the oil prices low then perhaps some of these issues could be mitigated in advance. It behooves the big oil companies to get their projects past planning commission stages quicker and it is better for the citizens to have lower gasoline prices. But if we attack the big oil industry then we will be feeling the brunt of the problem with higher fuel prices at the pump. Perhaps you will consider all this in 2006.
Article Source: http://www.content.onlypunjab.com
Lance Winslow, a retired entrepreneur, adventurer, modern day philosopher and perpetual tourist.
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
