[Vision2020] The Price of Gas

[Bill London]

B-
could you speculate about the lack of refinery facilities?
given the huge profits that oil companies reaped of late, it could not be
caused by lack of capital.  is it lack of planning?  a goal of forcing the
US government to soften regulations?  a goal of gaining favorable tax status
from US Government for investment in refineries?
BL


----- Original Message ----- 
From: "B.C. Strand" <Bill at strand.bz>
To: <vision2020 at moscow.com>
Sent: Wednesday, April 13, 2005 11:18 PM
Subject: [Vision2020] The Price of Gas


> Mr. Arnold and Mr Harkin have been arguing about the price of oil and
> gas in respect to overall cost of living. The easist way to make this
> comparison is to go out tot to a web site such as the St Louis Federal
> Reserve and download the historical data for the Consumer Price Index
> (CPI) for energy as well as the CPI for all goods and services (minus
> energy). The CPIs take into account inflation as well as relative use of
> different goods and services.
>
> A quick comparison shows that energy costs were indeed significantly
> higher in the late 70s then they are at the present time.
>
> As for the reason for the reason for higher gas prices - it is not crude
> oil availability. Oil inventory levels in the US are at record high
> levels (both in the stategic reserve as well as active inventories). It
> is the potential shortage of REFINED products (gas, heating oil, jet
> fuel, etc...) that have led to the high prices over the last year. Where
> 30 years ago US refineries were running 80% of the time, last year they
> were running at 95% levels (and were still behind the demand curve). And
> there is very little new refining capacity planned in the US. In
> addition, the specialized summer blends of states such as California and
> New York mean that gas cannot be imported (they have to import the blend
> components).
>
> Bill Strand
>
>
>
>
>
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