With gas spiking up to $5.50 in some parts of the south, it is clear that America's energy system is strained, and the slightest disruption is cause for large price jumps. However, the real problem is not so much a lack of oil, which can be found if the price is high enough, but a lack of refineries. The US has not significantly expanded it's refining capability in years, even as gas consumption continues to rise. Yet neither campaign has mentioned it as a problem, let alone suggested an answer. All we hear is either drill more, from the Republicans, or tax the oil companies and give subsidies to everyone from the Democrats. Neither is a solution to the oil issue, and neither address at all the refining issue.
Iran faced a similar problem, when it became obvious that they may be the target of sanctions, as it possesses plenty of oil, yet little refining capability. They solved the problem in a matter of months by switching all personal vehicles over to CNG, which does not require refining. By doing this simple step, they insulated themselves from sanctions on gasoline. While it is unlikely the US will face sanctions, it will face natural disasters, and may well face terrorism, and either would have grave ramifications for the economy.
It is likely that there are at least several possible solutions to this issue. However, as long as it continues to be ignored by both parties, it is unlikely that any solutions will be found. Until then, we will be forced to continue to simply hope for the best.
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Saturday, September 13, 2008
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