Opec cuts daily production by one million barrels
The White House on Wednesday criticised the decision by the Opec to cut oil output amid growing political pressure over the cost of energy in the US.
Opec’s announcement that it would proceed with a planned 1million barrel a day cut in production came despite White House pressure.
Record prices at the pumps are due to a combination of high crude oil prices, increased domestic US demand as the economy recovers and reduced capacity at refineries to produce petrol.
While some analysts argue that the Bush administration has little leverage with Opec, others say that increased production will not solve the underlying problem in the US.
“What is keeping gasoline prices high is not a lack of crude oil but the inability of the US refining system to respond to the very strong gasoline demand,” said Kevin Norrish, analyst at Barclays Capital. “Crude oil stocks look reasonably comfortable. The problem is that it is not translating into gasoline supply.”
Democrats and Republicans have called on the White House to cease topping up temporarily the Strategic Petroleum Reserve – a move that most experts argue would have little impact on gas prices.
“However oil markets play out over the next few weeks, gasoline consumers should expect to be paying even higher prices later this spring and summer.”
It’s going to be a long expensive summer at the pumps.
The unnecessary gas tax increases and now the inability to refine at a rate that our nation needs are clear signs that something has to be done in the immediate future so we don’t have to deal with soaring prices on a daily basis and also so the United States doesn’t again have to deal with gas shortages and gas lines as many did in the 70s.
The thing that frustrates me is that we have been talking about this for the past 4-5 years…we need to do something now.
peejz:
What exactly do you think America should do?
I’m not peejz, but I think the answer’s clear: more funding for alternative energy sources and in the mean time start tapping into our own vast natural oil resources so we don’t need to be so dependent on imported oil.
I think the environmentalist have gone much to far in trying to save fungus types and some forms of wild life – - if we didn’t have such strict regulations we wouldn’t have to be so dependent on other nation’s for our oil.
I have to agree with Lee’s take on this.
Ted
reilly, america has ‘dirty’ oil. very hard to get, it is mostly in shale, and difficlut to refine to the grade needed for gasoline. mexico and venezuela have som, but they are holding their cars until the poo really hits the fan. the artic refuge is the exemption, but what is there would keep
American moving for about 6 months max.
the solution lies in alternative and hybrid tech. my golf will run on grease. there is a guy selling it to me for $1.10 a gallon. it burns cleaner than gas and is better for my car.
want a SUV or truck? encourage the manufacturing or diesel or hybrids. jeep will have a diesel in the liberty, hybrids in the Escape and Hilander.
i’ve got a scooter for around town that gets 90 mpg.
a small, even 5-10% curb in consumption will create a massive impact ont he ability for US to sustain itself into the next decades.
the technology is out there.
Nice long term solution dick, but that doesn’t help us now… And I for one will not be loading up on grease or vegitable oil as I have seen Darryl Hannah do! That is dirty and disgusting. How is the grease that you are burning any better for the environment?
it is processed first of course, and then taxed as a fuel. which i haven’t figured out because it used to be trash.
the grease burned in the modern engine eliminates most of the soot, which is the biggest problem. grease creates a lot less soot than diesel.
long-term starts as short-term. dont wait for the government to save you cuz they won’t. they have their own reserves for themselves ready to go.
In all seriousnass, do you have some info that I can research?
I’d like to see that too DnB; not being sarcastic or anything, I just hadn’t heard of that alternative and would be interested in seeing some scientific data on it if you know where it’s available. And I agree; worrying about short-term solutions is no reason not to pursue the long-term ones. You have to start somewhere.
go to tdiclub.com follow the links for the biodiesel section. they have lots of links other biodiesel sights and pump locations around the country.
i’ll find some better links and post them. tdiclub is a little clunky to get around.
these links are good:
http://www.biodiesel.org
http://www.biodieselnow.com
Thanks; I’ll check these out when I get a chance.
And we are still dependant on OPEC while they are hollyweird freaks whine about the so called prestine enviroment in the ANWR while driving to the awards show in their gas guzzeling limos what a bunch of idiots