Consumption. Total petroleum products consumption in 2008 declined by almost 1.2 million bbl/d, or 5.8 percent, from the 2007 average, the largest annual decline since 1980 (U.S. Petroleum Products Consumption Growth). The major factors behind the fall in consumption were a rapid rise in retail prices to record levels during the first half of 2008 followed by a weakening economy in the second half. Motor gasoline consumption in 2008 declined by 320,000 bbl/d, or 3.4 percent. Despite the cold weather that gripped much of the Lower-48 States in December, distillate fuel consumption in 2008 fell by 5.4 percent from the previous year as a result of precipitous declines in transportation consumption of diesel fuel. Major reductions in airline capacity during the fourth quarter contributed to the 100,000-bbl/d, or 6.2-percent, drop in jet fuel consumption. Total petroleum products consumption in 2009 is projected to fall by a further 460,000 bbl/d, or 2.4 percent, because of continued economic weakness. Consumption of both motor gasoline and distillate fuel are projected to decline by about 100,000 bbl/d each. Jet fuel is forecast to fall by a further 60,000 bbl/d. The expected economic recovery in 2010 is projected to boost total petroleum products consumption by 220,000 bbl/d, or 1.1 percent.
Nothing there disproves my claim that, "The drop [in the price of oil] this year was quite a bit different for a number of reasons. In fact, it confirms it; "weakening economy in the second half". Pretty unique.
I don't understand this - by saying that we would open up most of the US to drilling, the economy got better?
You seemed to understand the idea of a short term psychological effect on the market in the econ stimulus thread.
US can't afford to drill in the areas opened up - even at $80 a barrel or more. OPEC likes to keep oil in that range - they make good money, and they make sure we don't drill, no matter how many areas we open up. OPEC isn't served by having oil at $120 a barrel.
So OPEC is manipulating the market. Doesn't prove that the oil companies are, in fact it may work against that idea.
Due to supply and demand forces, oil should be close to $80. It is half that due to an artificial bubble that is effecting the oil companies and refineries. They are the tool of the market correction to get it back to that market equilibrium level.
What they now do is get more capacity out of existing refineries, without building new ones.
That only goes so far. After a point, you cannot get any more refining capacity out of 30+ year old refineries. So in times of high demand, it works as a bottlneck that helps artifically inflate prices. We have seen the effects of this more and more every year during the summer.
Building new refineries probably isn't in the near future for the US, it doesn't make very good business sense to be building in an area that is forecasted to be shrinking.
Those estimates will change when the economy turns around, if it is allowed to.
And either way, business should make that decision, not the government. When government makes that kind of decision, prices get artificially inflated due to government basing their concerns more on political concerns then on economic/business concerns.
That is why they keep expanding the output of the ones we have. They are far more efficient than they were in the past.
Again, that has it's limits. It has effectively plateaued. Also, fewer refineries means less economic stability due to regional concerns, as Katrina showed.
Also EPA standards make it difficult to build new ones.
Which is the problem! The EPA (an unconstitutional organization) effectively limits refineries to a certian number and forces them to shut down at different times of the year to retool for refining of different blends for different parts of the country.
All-in-all there currently is a situation of 'what if you build a refinery and nobody came?'
Right now, yes. But that doesn't justify the EPA not allowing refineries to be built. When the situation changes and it would normally become profitable to build a refinery, businesses won't be allowed to do so due to EPA standards. Even at near $150 dollars a barrel, it is not worth the cost to build refineries due to unneccessary and unconstitutional EPA regulations. Considering how long it takes to build a refinery and get in running at full output (years, maybe over a decade), businesses should be allowed to build them ASAP so that when we need them, we will have them.
Change the blends - why?
EPA mandates on gasoline and some state mandates (California).
No shag, somethings at least should be left for the day we enter our MadMax society phase. Once they have torn apart our western plateaus for fossil fuel, we have off shore rigs dotting the eastern seaboard, and you can see 'grasshoppers' from the Mississippi to the base of the Rockies... Then we can start to strip things we can't get back. Obviously you have never watched the sun rise in Arches. Just because you can't appreciate natural beauty doesn't mean most of us can't. Those capitalists can sit in Ogallalla and see oil being pumped up for miles and miles. Let them sit there and watch the sun rise above a holding tank, counting their cash. There is enough room in the US for both sides of this.
Your little rant here is based on the assumption that exploration and drilling will "tear up" the landscape permenately. You need to validate that assumption. You are also imposing your own priorities on society. You need to justify why your priorities should be given precedent over others. I for one, value my standard of living more then maintaining the abstract and subjective beauty of some random national park I will never see.