Here's another interesting article:
It wasn't that long ago that refineries were full to capacity, and that kept the price up as no more could be refined to meet the demand.Be prepared because sky-high gas prices are coming!
The price of gas could soon soar to $4 a gallon or more, according to ABC News. The average price of gas, across the country, is $3.52 per gallon. The country came close to $4 gas last Spring but gas prices haven’t actually surpassed $4 since the summer of 2008.
Tom Kloza, of the Oil Price Information Service, believes that “it’s going to be a chaotic spring.” And, Andrew Lipow, president of Lipow Oil Associates, in Houston, opines that where the price of gas peaks “depends if the Middle East blows up in a war or not. That’s really the big headline out there: Whether or not geopolitical events disrupt supply. We see that affect already.”
Regarding this month’s crude oil prices, Kloza said that, “early February crude oil prices are higher than they’ve ever been on similar calendar dates through the years, and the price of crude sets the standard for gasoline prices.”
As reported by ABC News, while demand is falling (people are not driving as much), U.S. inventories are rising and prices aren’t declining because of increased uncertainty.
Underscoring the situation is the fact that Sunoco, Lipow points out, has begun closing refineries because of the decrease in demand. But, they have also been impacted by the switch from gasoline to renewable fuels and by competition from foreign imported gas. One third of Sunoco’s Northeast refineries have been closed in the past two years. Lipow notes that once a refinery is closed, it is not likely to reopen.
U.S. Defense Secretary Leon Panetta has been quoted as saying that there is a “strong possibility” that Israel will strike Iran’s nuclear facilities this coming spring. Analysis performed by NBC News indicates that any military aggression in the Middle East will result in an accession in crude oil prices:
“But if crude were to spike to $200, and we’re at $100 per barrel now, the industry consensus generally holds that for every $10 increase in crude we typically see about a 25-cent increase in the price at the pump. So if you’re seeing $3.50 a gallon in your local market and Israel attacked today, add $2.50 to that and now we’re looking at $6 gasoline. “
To read the complete NBC report, click here
Countering NBC’s analysis, are a few Israeli and American experts. According to an article by Michael Hirsh, in National Journal, they argue that an attack on Iran’s nuclear facilities will have less of a negative impact than originally thought. The following points are offered in support of this position:
- Iran’s governmental disorganization and infighting. The military is also disorganized and lacks strength.
- Iran is dealing with a poor economy
- Hezbollah and Hamas are reluctant to launch a counter attack on Israel
- Iran’s primary ally, Syria, is engulfed in civil war
- A “deterrent threat” from the U.S. could keep the Strait of Hormuz open
- Iran desperately needs oil sales in order to keep its gutted economy going, so it is unlikely to halt the petroleum trade.
Either way–regardless of whether a Middle East war is on the agenda, it appears that gas prices will accelerate.
-Candice Lanier
Now the Obama/Soros/leftist/Marxist plan is in full swing.
Refineries closed never to reopen again.
If they try (under an Obama regime), regulations and red tape will prevent them from doing it.