Big oil announced over the weekend it will reconsider planned refinery expansion due to predicted decreased demand as consumers shift to ethanol and other alternative fuels. Does this mean they plan to give up the hundreds of millions in incentives in the 2005 Energy Bill to expand refinery capacity? Or have they already exhausted those public funds?
Meanwhile it appears a huge source of oil will soon be available. The U.S. Ambassador to Iraq said the Iraqis were “very close” to agreement on a plan for managing the country’s oil production and share resources. With a deep long term supply of oil, the best way to keep prices up is to limit or restrict refining capacity. Welcome to the Bush oil oligopoly.
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