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.
The Germans are so exact, even when they are exactly wrong.
"Now we should invade Russia."
I agree. In addition, on the topic of ethanol, do they use petroleum products to fertilize the grain?
How about:
Save the environment and cut energy/fuel prices... eliminate liberals and environazis.
:-)
Thank you for reminding me. You are absolutely correct. Also they used petroleum based herbicides and pesticides.
But then Republicans would lose the California vote in the next presidential election! ;-)
The Germans should do what they always do, just raise the gas tax to stunt consumption, and their economy.
Way past time for more nuclear power plants and for drilling in our own backyard.
I went to sleep last night--sorry for the late reply.
I agree with OG's interpretation as well as your expanded comment. If we're talking about refinery capacity alone (which was the concern of the comment that it is "our fault" that oil prices are up because of poor refinery planning) then a lack of refinery capacity affects downstream product delivery. It would lead to a supply shortage on refined products and higher prices; but the inability to process crude if available would also lessen the worldwide demand on crude.
In your later comment, you spoke of problems with oil production in the Gulf. Obviously that will affect the supply of crude while the Gulf production recovers. Which is the greater effect? I don't think we know yet.
Hmmph. As one who lives in Florida, I can testify that the Panhandle is underpopulated. In fact, so is the whole Gulf coast north of Pasco county. There's plenty of room to build a few refineries there. We could also put one in Indian River, St. Lucie or Martin County, to service the big population center in south Florida. And since oil rigs are safer than they used to be, are they really that ugly when planted off our shore? I think high gas prices will change the minds of a lot of folks about offshore drilling in a hurry.
"Is it too late to do one last bombing run on Berlin?"
I fear, there´s a peace treaty signed after all. In 1991, the treaty about the final regulations on Germany has been set into force (also the four powers gave up their rights on Oct 3rd 1990, 00:00 am) - signed and ratified by the Soviet Union, the United States, the French Republic, the United Kingdom of Great Britain and Northern Ireland, the German Democratic Republic and the Federal Republic of Germany. The war is over.
For a year I've been hearing that more people driving in India and China is what's driving gas prices up. Are the Germans blaming anybody in Asia for that?
Yes, we know.
The same crap was sold and "spun" by the German ruling party slightly different two days ago. It's election politics the German style.
http://www.freerepublic.com/focus/f-news/1473846/posts
The Germans always look for their "Jew" to blame. Today we have become this Suendenbock.
The Germans years ago even blamed the Cold War itself on us! While we were defending them they pointed the finger and said, “You just don’t want to fight this war on your soil so you want to fight it here and destroy us.”
The Germans are disconnected from reality. Maybe Clemens should remember WHO it was that delivered Germany oil during the oil crises in the 70s.
Fact is, BP pumps a lot of it’s oil here in the US. They (EU) are more dependent as a percent and in total volume from imported oil than us. Much of their oil is from the Middle East whereas ours is not. Reason, logic and constructive criticism have long left Germany. The current ruling party is playing election politics by appealing to the “anti” American fervor in Germany today. It’s shear “ideology” (Socialist and environmental) combined with contempt and spite for the US based on some of these ideological principals and a new found national pride.
Maybe Schroeder should say something about Abu Gahrib?
Red6
GERMAN CALLOUSNESS: Kicking Hurricane Victims While They're Down
SPIEGEL Online | August 31, 2005 | Claus Christian Malzahn
Posted on 08/31/2005 10:00:20 AM PDT by wolf78
http://www.freerepublic.com/focus/f-news/1474159/posts
The Biotech BoomWhen Ernst-Ludwig Winnacker started out as a biochemist at the Max Planck Institute in Munich, Germany, he could assume that if he worked hard, he would eventually win recognition from his peers and perhaps a science prize or two... Protesters were calling him a murderer and harassing his kids on their way to school. The police found his name on a terrorist hit list. He had to install a security system in his home and travel with bodyguards... One of the protest leaders who helped demonize Winnacker was Joschka Fischer, a Green-party minister from the state of Hesse. Like many radical groups at the time, the Greens were fervently against anything that smacked of Nazi-style eugenics -- just about anything with the word "gene" in it. That also included a new plant for manufacturing a genetically engineered protein for hemophiliacs, which Winnacker strongly supported. In the end, the protesters got their way. Pharmaceutical giant Bayer decided to build its plant in the United States, taking 1,300 new jobs abroad.
by Karen Lowry Miller
[original, dead link]
That was 12 years ago. These days the prevailing attitude toward biotechnology couldn't be more different. Fischer is still a Green, but he also happens to be Germany's foreign minister and a cabinet member in the government. The Greens, now part of the political mainstream, are no longer against genetics. On the contrary, they are presiding over a dizzyingly rapid expansion in Germany's biotechnology industry.
These eurotrash ingrates are a real piece of work. Maybe if we hadn't spent our national blood and treasure protecting their sorry asses for 50 years we could have spent a lot more money here at home on ourselves!
This is true and you can thank the Dems!
The people that can't afford gas to come to FL are the ones that can't afford a vacation here, either. The tourists with money still see FL as a great destination. A lot of the tourists are from overseaas where gas is even more expensive. I don't see a tourist hit.
I agree with you on that. We need to open uo to drilling here. The problem is the politicians like Jeb and the NIMBY's. Also with all the growth here, some investment needs to be made in light rail or even high speed rail. Our highways just can't take the volume of traffic any more.
It seems the only difference between France and Germany these days is that France has had more years of experience stabbing the US in the back.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.