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.
And given that our party controls the Senate, this is inexcusable.
Well, our lack of refining capacity is not responsible for the price of a barrel of oil. But it is partly responsible for the price at the pump. And they are correct that we need more refining capability, if only so a repeat of the last few days does not occur.
When you need near 100% of your refining capacity just to break even, a disruption like a hurricane is going to cause shortages and price spikes.
He is right - what's the big deal? The US needs to increase its refingin capacity - let's get on with it!
Screw the Krauts. We do need more refining capacity: that much is true. Enemies and fellow-travelors always learn a few facts so their appearance of concern is not pierced too quickly.
we don't have 60 votes, not even 50 on some things.
Bush should be using EOs more on these energy issues.
Since it's finished products that ultimately are useful, such prices are more important.
That Liberals for you, that are the cause of the problem and are the problem, and when problems arise ? they want to blame everyone except themselves.
Oh, please...what a bunch of whiners...when Clinton released the oil just to get Gore elected, who do you think went and bought the cheaper oil....europe.
> Enemies and fellow-travelors always learn a few facts so their appearance of concern is not pierced too quickly.
That is the essence of propaganda & disinformation.
The WSJ had an editorial today on the fact that Germany has an election coming up and Schroeder looks like he's going to be ousted by a more conservative woman (the daughter of a Lutheran minister)who proposes a more pro USA stance. It is not surprising that the Shroeder gov't is trying to rally anti US sentiment since that is what saved him the last election.
Hammer, meet nailhead.
Bush will never do anything to increase our energy resources. He hasn't made an issue of it and it looks like even with 25% of our capacity hit, he still won't Coupled with his support of illegal immigration and expansion of government spending, we have the ultimate RINO in the White House. Congress is silent on the subject, too.
yep
Tourism trumps energy in the FL economy. Jeb is doing everything he can to stop drilling off our coast. The NIMBYs of the wealthy beach communities are against the drilling so it's from the grass roots on up. Jeb is a good, energy responsible governor [not].
How many tourists will go to FL if they can't drive or fly due to fuel shortages?
Question: Is there a link between Bush's policy of permitting illegal immigration and the lack of refining capacity?
I suspect that the oil producers and refiners in Mexico remain unfazed by the hurricane, and they will make out like raped apes because of our lack of refining capacity.
Can anyone here identify a connection bewtween the Mexican and American economies in this regard?
Never forget.
As of 2002, the US was importing 338,200 barrels per day of refined product from Mexico. The US was producing 2,390,000 barrels per day of refined product domestically.
Will this ratio be changing now? I think it might, and we are going to see a new agreement of some kind with Mexico to supply more refined products. That way, they can build them in Mexico and avoid all of our regulations.
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