Global demand hurts cheaper gas forecasts

[Globalist]

Global demand hurts cheaper gas forecasts

A growing shortfall in refining capacity is not just a U.S. issue but a world problem.

By Bhushan Bahree and Thaddeus Herrick / Wall Street Journal


Even if high oil prices ease, prospects for cheaper gasoline, diesel and jet fuel are likely to be limited for at least several years by a growing global problem: a severe crunch in refining capacity.

Previously, the shortage of plants to refine and process crude oil into usable products has been largely a problem for the United States, by far the world's largest oil consumer. But growing demand for oil from China, India and other rising powers are aggravating the shortfall in refining.

Global demand is expected to grow by nearly 2 million barrels a day this year -- from 82.5 million barrels a day last year -- but the world's capacity to refine and process crude oil is expected to grow by less than half that.

As a result, the recent move by the Organization of Petroleum Exporting Countries to crank up production of crude oil to nearly its limit isn't likely to translate into major price cuts for consumers soon. That could keep pressure on airlines, automakers, and other industries particularly sensitive to prices of oil-based fuels.

It's a problem that the world's energy and economy czars are focusing ever more closely on.

"There is a bottleneck in refining world-wide," said Saudi oil minister Ali Naimi, the effective leader of OPEC.

[Globalist]

Originally Posted by Globalist

Global demand hurts cheaper gas forecasts

A growing shortfall in refining capacity is not just a U.S. issue but a world problem.

By Bhushan Bahree and Thaddeus Herrick / Wall Street Journal


Even if high oil prices ease, prospects for cheaper gasoline, diesel and jet fuel are likely to be limited for at least several years by a growing global problem: a severe crunch in refining capacity.

Previously, the shortage of plants to refine and process crude oil into usable products has been largely a problem for the United States, by far the world's largest oil consumer. But growing demand for oil from China, India and other rising powers are aggravating the shortfall in refining.

Global demand is expected to grow by nearly 2 million barrels a day this year -- from 82.5 million barrels a day last year -- but the world's capacity to refine and process crude oil is expected to grow by less than half that.

As a result, the recent move by the Organization of Petroleum Exporting Countries to crank up production of crude oil to nearly its limit isn't likely to translate into major price cuts for consumers soon. That could keep pressure on airlines, automakers, and other industries particularly sensitive to prices of oil-based fuels.

It's a problem that the world's energy and economy czars are focusing ever more closely on.

"There is a bottleneck in refining world-wide," said Saudi oil minister Ali Naimi, the effective leader of OPEC.

In April 27th, a Fact Sheet from the White House "Promoting Energy Independence and Security." One of the President's plan was, I quote:
- Expanding Refining Capacity: Demand for gasoline is growing 3.5 times faster than the rate of refinery production, and there have been no new oil refineries builyt in the United States since 1976.

I've been an advocate for such action since a long time when I was working for a major automaker.

In Dec 31st 2004, I wrote in this site:

Re: GMs billion dollar problem
What I meant is that when your vehicle mix is more trucks than cars, then obviously high oil prices will hurt you in the long-run, and it's well known that recent oil prices peaks ($50) were pure speculation (paper barrel effect) and not a real supply/demand problem. The other problem is U.S. actual refinery capacity that can't afford those artificial huge demands created by panics due to speculations. It will recur in the future, and guess who is making money in this process by not investing in refinery capacity in order to take full advanatge of market volatilities, and speculations.

[Codester66]

scroll down to the energy or oil section and see what the builderbergs have to say

http://www.infowars.com/articles/nwo...m_of_hands.htm