http://www.yahoo.com/s/783358

Hopefully the link works, I've had some trouble with it.

This is what bugs me, and it came up on a different, totally unrelated thread. Bush wants OPEC to increase oil production to keep oil prices down. If oil kept rising, people would eventually decide to purchase cars that get good gas mileage. You probably wouldn't even need CAFE standards, because the demand would be there, and the auto companies would fill it. Also, alternative energy would get a boost as it would be more competitive.

But Bush seems to do everything he can to keep oil prices down. I understand that it hurts the economy. It isn't the only thing hurting the economy though. And it is going to happen sooner or later. Seems like he's willing to mortgage the future.

Just wanted to know people's thoughts on this.

Truthfully, I don't think more OPEC production will do a whole lot to reduce the price of gas. Even if they would increase production by a lot, we don't have the refining capacity to convert the crude to gas/diesel/propane/etc. much more than we are doing now. It might drop the price of crude, but the refining limits would tend to keep the end use prices up.

Is the refinery capacity expanding? I thought I read that it was, though it would still take a while for it to have an effect. Could be wrong about that.

Or, was Bush's statement just for public consumption (no pun intended)?

NIU007 Wrote:Is the refinery capacity expanding? I thought I read that it was, though it would still take a while for it to have an effect. Could be wrong about that.

Or, was Bush's statement just for public consumption (no pun intended)?

I keep seeing commercials for Marathon Oil is either expanding or building a new refinery in Garyville Louisiana. That should help somewhat but other than that one, I am not sure if there are any more being built/expanded.

I think OPEC should further curtail production just to see Bush and the US grovel, cry and beg. Looks like that's what it's coming to.