Sunday, September 04, 2005

Oil prices (a more refined look)

Gasoline prices have been really high around here lately... and some might be quick to assume this is because of a lack of crude oil supply... If that were the case then this would be the answer: Let it go up. I pay for gas too, but we might as well let it slowly go up, so we can continue to use our cars, while we move closer to work, and buy more efficient vehicles, (or tone up our bike-riding muscles)... But most of the problem is not with crude oil supply (or price gouging, or anything else). Most of the problem is with refinery capacity. Prices per gallon of crude went up 10 cents, while prices per gallon or gas went up 78 cents. Hurricane Katrina knocked out refinery capacity in the southwest by either destroying them directly, or knocking out power to them or their pumping stations, so they couldn't get the crude to the refinery. So, what I say is... build more refineries... and start laying rails (or invest in other alternative transport), because we need a cheaper way to get around!

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