Doesn't America get a DEAL?
http://greyfalcon.net/oilprice.png

I mean it's election season, why can't we have our cheap oil for the HOLIDAYS?

_

I often find it funny that people argue that Oil companies don't like having a tight limit on refinery capacity.

Cause if you think about it, it's a lot like Diamonds, how they have a tight limit on refining capacity intentionally.

"Cause if you think about it, it's a lot like Diamonds, how they have a tight limit on refining capacity intentionally."

And you know why?  Because they built lots of refineries at the end of the 90's -- just before the big crash and worldwide depression!   China has something like 5 refinery projects that were mothballed and I think scrapped because no one foresaw the recovery.

Even still, growth is so anemic (beige book pegs it at 1% for US) you can see why oil companies would be hesitant to build a lot of capacity if no one showed up for the gas.

John A. Bailo
Inhofe 400 Wannabe
My Log

and the Saudi's are producing flat out. Multiple articles on The Oil Drum detail this.

Peak Oil was in 2005.

Put the Carbon Back