“Anyway, OPEC has hit back over the issue, and they nailed the issue cold. The Saudi foreign affairs adviser, Adel Al-Jubeir said that the lack of refining capacity in the United States was the reason gas prices were rising. ‘There has not been a refinery built in America in the last 20 years. So if you produce more crude oil but you can’t refine it, it’s not going to translate into gasoline.’ He also said that environmental restrictions requiring special blends sold in different cities was driving up the price. ‘Unless the U.S. begins to simplify this area, and unless the U.S. deals with its refining shortage, there will always be a problem with gasoline.’
So there you have it. We’ve told you before: the hysteria over gas prices is a basic supply and demand issue. Unless the anti-capitalistic environmentalists get out of the way and allow more refineries to be built, you will always have a shortage, and prices will increase during peak driving seasons.
And there’s nothing Senator Kerry or President Bush can do about it. “
So, let’s get some refining capacity online, and let’s get the blends standardized across the country.
It’s the only way out of this box.