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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Saudis to Build Two Refineries in U.S.
Production; Extraction; Exploration

Al-Naimi said that Saudi Arabia is committed to alleviating the bottleneck in U.S. refinery capacity and has offered to help by building the two refineries.

Yahoo - Reuters
Posted on Tuesday, April 27 @ 01:15:29 PDT by admin
 
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