gpcooper3

US Oil Companies Borrow A Page From OPEC's Playbook

I have to agree with you here. The energy coefficient for ethanol definately does not make it a viable choice for a fuel alternative to fossil fuels. We can only hope that the higher profits of the day result in a larger R&D budget that will make for a more realistic fuel source.

But how else would democrats gain support in the typically red farm states? I think we are returning to the days of farm subsidies.

US Oil Companies Borrow A Page From OPEC's Playbook

That simply proves my point. Decreased supply of refined products contrasted against an increasing demand of refined products will only cause prices to go up.

If and only if the supply of alternatives to refined products exceeds the increased rate of consumption of energy will the demand for refined products reduce and cause a decrease in the price of gasoline. I don't see that happening anytime soon, especially in the face of reduced refining capabilities.

The decoulping of crude prices and gas prices means that profit margins will increase. So wouldn't this qualify as artificially induced inflation since there is an intentional effort to not invest in production capabilities? I think they have become accustomed to the higher margins.

US Oil Companies Borrow A Page From OPEC's Playbook

I believe that the lack of logic is on your side. A shortage of refineries results in a shortage of supply. There will be no shortage of demand in this country or especially in the Chinese market. And what does a shortage of supply cause? Certainly not a decrease in price!

Looks like you skipped economics class altogether!