MyWAG
Sunday, November 27, 2005
  Is there a manufacturing crisis?

Or has a crisis been manufactured?

There is nothing like a crisis to motivate people and govt into action. Money is spent to solve the crisis...no questions please. Questions slow the profit, I mean solution down.

Think Enron. The recordings of traders selling grandma down the drain for their own profit is left wing propaganda...if it were not for the fact that the traders were recorded as they manufactured the electrical crisis that consumed California.

Redstate.org, in the person of Pat Cleary has posted another story that pushes and continues the manufactured oil refinery shortage crisis. Hold onto your wallets because Pat even pulls out the protection of poor people to support his perverted economic theory.

Redstate would not allow me to post a comment even though I'm registered and not a troll. It seems that the now controversial GWB theory of intelligence is spreading. If you want to convince others of your theory...dismiss all dissenting views. Iraq offers a decidedly different alternative to cherry picking intel.

This is just a taste:

Pat Cleary just posted another false tale concerning the shortage of oil refineries. There is an economic lecture that might make you vomit:

Everyone's for new sources, all for conservation. But this is not a zero sum game. That only gets us so far. In the meantime, we need to be doing everything in our power to tap into the enormous supply of energy that we have in this country. We remain the only country in the world that limits access to its own natural resources and now the poor and those on fixed incomes are quite literally going to pay the price for it. Anybody cover supply & demand in Economics 101...

For a dissenting view please read this from the Dept of Energy.

Refining/Downstream
The United States experienced a steep decline in refining capacity between 1981 and the mid-1990s. Between 1981 and 1989, the number of U.S. refineries fell from 324 to 204, representing a loss of 3 million bbl/d in operable capacity (from 18.6 million bbl/d to 15.7 million bbl/d), while refining capacity utilization increased from 69% to 87%. Much of the decline in U.S. refining capacity resulted from the 1981 deregulation (elimination of price controls and allocations), which effectively removed the major prop from underneath many marginally profitable, often smaller, refineries.

Refinery closures have continued since 1989, bringing the total number of operable U.S. refineries to 149 in 2003. In general, refineries that have closed have been relatively small and have had less favorable economics than other refineries in their market area. Also, in recent years, some smaller, less-economic refineries that had faced additional investments for environmental reasons in order to stay in business found closing preferable because they predicted that they could not stay competitive in the long term.

While some refineries have closed, and no new refineries have been built in nearly 30 years, many existing refineries have expanded their capacities. As a result of capacity creep," whereby existing refineries create additional refining capacity from the same physical structure, capacity per operating refinery increased by 28% over the 1990 to 1998 period, for example. Overall, since the mid-1990s, U.S. refinery capacity has increased from 15.0 million bbl/d in 1994 to 16.9 million bbl/d in September 2004. Also in September 2004, utilization of operating capacity at U.S.United States, expansion at existing refineries likely will increase total U.S. refineries was averaging around 90%, down from 97% in July and August. Although financial, environmental, and legal considerations make it unlikely that new refineries will be built in the refining capacity in the long-run.

 
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