Friday, August 26, 2005

Oil Price Nonsense

BP capital management chairman, Boone Pickens, appeared on MSNBC's 'Hardball' with Chris Matthews this evening. Boone lives in Texas (where else) and blamed the rising price of gas on not enough refinerys to keep up with demand. He said worldwide demand is eighty-five million barrels a day and is expected to hit eight-seven million in the fourth quarter of this year. He also stated the middle east has plenty of oil (well, duh) and "the Saudi's need the money." He also said barrel prices will probably never be below fifty dollars again and will probably hit seventy dollars in the fourth quarter. Asked by Matthews about how all the commuters in the states are going to afford driving to work, Boone non-chalantly answered, "I don't know.."

If all this is true, then why aren't the oil companies spending some of their enormous profits on building more refining plants? I think we all know the answer to that question.


Blogger mojoala said...

I think Oil just hit 70 dollars a barrel on Friday.

Okay I feel a little stupid here, exactly why are we not building refineries?

9:10 AM  
Blogger kntspll said...

They are not being built for the same reason a surge gate was not built at the southern end of Lake Pontchartrain to protect it from storm surges (which was signed into an act by Pres. L. B. Johnson in 1967). TaDa "Environmentalists"-who stopped the construction of the gate in 1970 with legal action in the Courts. Now as time has advanced and good deeds and wishes put into Law, and we and the environment are all so much safer, the cost of building refineries and meeting government E.P.A. standards has been made cost prohibative to the oil industry.
So we pay the price of a 30 year old case of well intended idealism and discover good intentions can have their price that the majority unknowingly will pay out the wazoo so some swamp rat can have a home. Here's my question-Where's price ceilings on goods and services that, if not emplaced will brake the economic backs of the "Middle Class" and those equated as "Lower Than". If this is to be the greatest test for "Trickle Down Economics" I feel that the vast majority (Not raised on a farm) will sadly discover that only S_ _T rolls down hill. So everybody hang on to your hats, bend over and at least take a good look and kiss Christmas goodby. It's really a shame that a "Second Term President" is-in reality-a "Lame Duck" (Though it takes 4 years to be replaced). I hope and pray for the best for the current President, but I greatly miss the stained dress days of a 5 trillion dollar surplus.

4:55 PM  
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