ITRADE
Veteran
The lack of oil refining capacity is in fact hurting matters. Oil is coming in, but it cannot be processed fast enough to satisfy demand. That demand is a result of the myraid of SUVs, luxury sedans, and oversized houses that have sprouted up all over the country.
The answer would have been nuclear power for home/commercial power, but that was blown out of the water years ago.
The reason why you're seeing oil at $42/bbl is because you have about 1.5 billion people in China and 1.1 billion people in India who have decided that they're fed up with the dark ages and want to be true consumers of material goods (televisions, kitchen appliances, and, yes, automobiles). It is this demand that is putting the HUGE strain on the fixed level of crude resources.
The answer would have been nuclear power for home/commercial power, but that was blown out of the water years ago.
The reason why you're seeing oil at $42/bbl is because you have about 1.5 billion people in China and 1.1 billion people in India who have decided that they're fed up with the dark ages and want to be true consumers of material goods (televisions, kitchen appliances, and, yes, automobiles). It is this demand that is putting the HUGE strain on the fixed level of crude resources.