Post
by Sunny Boy » Wed. Dec. 12, 2018 5:05 pm
I can explain.
Our oil supply has for a long time not been limited by the amount of barrels in the ground, or the wells drilled. We have well over hundred years worth of oil and gas in the ground and lots of wells already drilled and capped waiting. For decades the lack of refinery and storage capacity has been the limiting factor. The government has made building new refineries and storage facilities a ridiculously long and expensive process.
Over 30 years ago, one of my customers - then owner of the largest fuel oil business on Long Island and a former President of the Oil Heat Institute of America, warned that we were headed for high oil prices because of what the EPA regs were doing to restrictions on the permitting process for new refineries and forcing the elimination of storage facilities because of making them too restrictively expensive to maintain, much less have new ones built.
Because energy is a big cost to industry, anytime energy prices drop, businesses typically do better.
Paul