Posted on 08/31/2005 7:38:48 PM PDT by freedom44
BERLIN, Aug 31 (Reuters) - Germany said on Wednesday the United States was partly to blame for record oil prices and should look to extend its refining capacity after Hurricane Katrina wreaked havoc at U.S. refineries, hitting output.
Economy Minister Wolfgang Clement told German radio that the damage to U.S. refining capacity caused by the storm would likely prompt American industry to buy more oil in Europe, which could further inflate prices.
"On this I must say the United States has had insufficient refining capacity for a long time, and this is presumably now impaired, so the situation is coming to a head," he said.
"It's a U.S. problem, a problem with American policy. It's to do with American planning rights which lead to yield expectations in investments in the sector not being high enough. I hope the American government reacts differently to this."
In view of this Clement said "the American structure, not oil firms" was principally to blame for the oil crunch.
Clement also blamed hedge funds, saying they were probably helping to boost prices via speculation. Overall, he estimated that about $18 per barrel resulted from speculation.
Speaking at a news conference later, Clement said that hedge fund speculation needed to be addressed internationally.
Clement's comments come after warnings from top French officials in recent days about the impact of high oil prices on state finances.
On Tuesday, French President Jacques Chirac called for an overhaul of the country's energy policy, after forecasting that world oil prices were likely to stay high for a long time.
Chirac's Finance Minister Thierry Breton said earlier on Wednesday that high oil prices posed a risk for the public finances of the euro zone's second biggest economy.
GROWTH WORRY
Crude oil prices on world markets have shot to over $70 per barrel since Katrina, one of the most powerful hurricanes in U.S. history, forced operators to close more than a tenth of the country's refining capacity and a quarter of its oil output.
Earlier this week, Germany's BDI industry federation said that if the oil price remained at current levels for the remainder of the year, German growth would likely only reach 0.75 percent rather than the one percent it had forecast.
Clement said recent developments on oil markets had taken everyone by surprise, noting that the storms in the U.S. had had a catastrophic effect. He said the oil spike posed risks to German growth, particularly if exports were affected.
"The world economy is strong so far but it would be even stronger if we didn't have the oil prices," he said.
On Monday Clement said Germany needed to deepen its ties with Russia, its biggest oil supplier, in order to help offset the impact of record crude costs.
Germany is one of the world's biggest energy consumers but has limited natural resources and imports most of its oil.
German Chancellor Gerhard Schroeder, who warned last week of the detrimental effect of oil on consumers, is expected to sign a long-awaited Baltic Sea pipeline deal at a meeting with Russian President Vladimir Putin on Sept. 8 in Berlin.
High oil prices and stubbornly high unemployment have been blamed for holding back German consumer spending, which has acted as a drag on the economy for years. Data on Wednesday showed that German retail sales fell on the month in July for the fifth time in six months.
Not this crap again....
Same fools who want us to sign onto the Kyoto Protocol are now crying about the high cost of fuel.
Why are the europeans not donating help? because they want the USA to expend GNP on aftermath repair.
Its all a political calculation for the Eurocrats.
Screw these Nazi krauts. We need to nail these bastar*s to the wall once and for all. Euro trash is not something we have to put up with IMO, and the krauts are among the wurst.
Hate to say it, but they're right.
Hold it, hold it... we can't refine the crude we have, so that will drive us to buy more crude from Europe?
Hey Wolfgang, is that really what you meant to say?
Feed them to the dogs, Caligua style.
We have oil much closer to us than ANWAR, though we should drill there too. The federal waters off the CA and FL coasts have oil. That oil belongs to all of us. The President should declare an emergency and tell the drillers to go out and get it. CA and FL would still be standing tomorrow if he did, only now they could stop being the energy slackers they have been for the past 60 years. If that seems too harsh for the environazis, then cut off all petroleum products to CA and FL until they have a change of heart. It is a crying shame that Texas and Louisiana are paying $3/gal for our own oil when these states refuse to share the load.
where are the votes in the Senate to pass sweeping changes? they aren't there - not on ANWR, not for gutting EPA regulations. they aren't there.
Yup. You hit the nail on the head.
Economy Minister Wolfgang Clement....
soon to be Ex-Economy Minister on Sept 18th.
HEY SCHROEDER, MAYBE IF YOU AND THE IDIOTS SOCIALIST GREENS YOU STUFFED INTO CABNINET POSITIONS WORKED TO CREATE SOME JOBS FOR YOUR PEOPLE, AND DIDN'T BASE YOUR ENTIRE ELECTION CAMPAIGN ON BASHING AMERICA LIKE YOU DID THE LAST TIME, YOU WOULDN'T BE 20 POINTS BEHIND IN THE POLLS.
So true!
Now if had said we were putting upward pressure on the worlds crude market because we lost some crude production capability due to the hurrican, he'd have a point.
But being an idiot socialist, he didn't say that.
So sad that we can actually see Cindy Sheehan and her friends saying that though... What has our media come to that they're pandering to conspiracy theorists and nut jobs?!?
If there was some leadership, they'd be there.
The GOP has 55 seats, the most I can ever remember them having.
Republicans need real motivation stemming from intense rivalry for power with another serious national Party, which of course the Democarts are incapable of providing. The latter just needs to fade fast, so that a new Party can emerge from within the Republican ranks, galvinizing the previously deadened to reclaim the actions that their campaign slogans and rhetoric indicated.
Thanks for the friendly advice Herr Clement. We'll take a look at doing just that.
But more refinery capacity than in the 1970s.
> Germany blames U.S. for oil spike, urges action
But wait a minute. Just yesterday, I heard a German official blame the US' lackadaisical attitude toward global warming as the reason for the hurricane in the 1st place.
Now, they want us to build even more refineries, which will further exacerbate the purported global warming problem? Which is it, Fritz?
"Feed them to the dogs, Caligua style."
Being a dog lover, I'm not sure about this....... hehehe
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