Quote:
Originally Posted by Craig
You may be correct, I wish I knew. I do think prices will climb until they reach some price point that will make investing in new capacity safe, then (5 years later, when the capacity is actually built) we will see some kind of equilibrium.
Don't get me wrong, I'm not in favor of paying more for energy; I just think it's inevitable that we will, and that any interference to try to hold prices lower will probably just make things worse in the long term.
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The question is at what price does the industry view as being feasible to invest in refineries. It doesn't seem to be the $4/$5 mark so whats it going to take?
Drilling new wells in this country may not be the answer to price reduction either. The oil in Alaska is being sold overseas because it's not the sweet crude that our clean air policy demands.
I do compare the oil market to the housing market i.e. it is a bubble that will burst then level off but IMHO that level may not be much below the $4 mark.
Never thought for a minute you or anybody else in this country for that matter is in favor of higher prices for energy. EDIT.....except the greedy American oil mongers.
