No; building refineries will not reduce the price of crude. Products refined from crude are traded as commodities. Along with the supply and demand of crude, the supply and demand of refined products also affects the price the consumer pays for those products. The question can become if the industry is making money in the current situation, will it build new refineries given relaxed regulation, if new refineries that may increase supply, resulting in lower prices for the refined product. Doug, N0LKK Kansas USA
chem.dd wrote: > Building new refiniries will not reduce the price of crude. It is based on > global demand. The Chinese and Indians are rapidly moving from bicycles to > automobiles. This is why the price of crude is $70+ for a barrel. And this > is why bio based feedstocks for fuel are going to become economically > viable, irrespective of environmental concerns/benefits. > If crude were at $25/barrel we would not be having this conversation. > David > ----- Original Message ----- > From: "Doug Younker" <[EMAIL PROTECTED]> > To: <biofuel@sustainablelists.org> > Sent: Sunday, June 11, 2006 5:33 PM > Subject: Re: [Biofuel] No New Refineries > > >> This is one of those times I smell a rat, but can't find/prove it. In >> regards to environmental requirements, in the industry previously >> claimed the costs where too high and the consumer wouldn't pay the >> price. Here we are now: No refineries where not built and the consumer >> is paying unprecedented prices that result in higher profits for the >> industry. Chances are the industry will be allowed to build new >> refineries that don't meet the stricter environmental require, pocketing >> the savings. The cynic in me has to feel that in no way, even with >> relaxed environmental regulations, will the industry build capacity to >> significantly increase supply. Oh well... >> Doug, N0LKK >> Kansas USA >> >> Keith Addison wrote: >>> http://www.tompaine.com/articles/2006/06/06/no_new_refineries.php >>> >>> No New Refineries >>> >>> Frank O'Donnell >> _______________________________________________ >> Biofuel mailing list >> Biofuel@sustainablelists.org >> http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org >> >> Biofuel at Journey to Forever: >> http://journeytoforever.org/biofuel.html >> >> Search the combined Biofuel and Biofuels-biz list archives (50,000 > messages): >> http://www.mail-archive.com/biofuel@sustainablelists.org/ >> > > > _______________________________________________ > Biofuel mailing list > Biofuel@sustainablelists.org > http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org > > Biofuel at Journey to Forever: > http://journeytoforever.org/biofuel.html > > Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): > http://www.mail-archive.com/biofuel@sustainablelists.org/ > > _______________________________________________ Biofuel mailing list Biofuel@sustainablelists.org http://sustainablelists.org/mailman/listinfo/biofuel_sustainablelists.org Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Search the combined Biofuel and Biofuels-biz list archives (50,000 messages): http://www.mail-archive.com/biofuel@sustainablelists.org/
