Wednesday, August 31, 2005

Katrina has come and now it's time to pick up the pieces.

Camille part 2 is appearing to be an understatement. To the best of my knowledge, a city the size of New Orleans has never been evacuated in our short history.

I still am hearing the same thing from people who don't understand the problem. Yes, President Bush has released some of the oil from our strategic reserves. That's a wonderful gesture, but still nothing more than that. The oil still needs to be refined and it's the refineries that were at the heart of the bottleneck before Katrina. OPEC could triple production, and line up tankers 25 deep at our ports, but without the refining capability, it won't have any real effect on supply.

Until more money is put into refining capabilities, we will see this issue time and time again. The problem is that it is not economically feasible to bring more refineries online now. Until the government makes it easier to build them, the oil companies will keep things as they are now. One of President Bush's initiatives was to take some of the military bases that are being closed and put refineries on them. That to me sounds like a workable idea.

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