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The Energy Policy Act of 2005: Legislative Achievement or Management Fiasco? Global Public Media
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The Energy Policy Act of 2005: Legislative Achievement or Management Fiasco?
29 Aug 2004 View all related to Climate Change Energy Oil Politics View all related to Ron Cooke
The Passionate E-Mail.
I received an impassioned E-Mail chain letter last week. The author asked everyone on the list to boycott ExxonMobile because the price of gasoline is too high. My response? The price of oil is set by a complex interaction between producer nations and the commodity markets. The current price increases have been caused by the very thin margin between world supply and demand, and a lack of refining capacity - particularly in the United States. Since gasoline, diesel, propane, and heating oil fuels are all made from oil, consumers can expect more price shocks in the future. The supply of oil and refining capacity will continue to be inadequate until new production comes on-line, or demand decreases. Although future oil prices promise to be very volatile, resource depletion guarantees the long term price trend is UP. As for "Big Oil", I agree these imperious corporations need to stop hiding behind the walls of their PR fortresses and "come clean" about profits and prices. But most troubling of all, they should tell us why (most of them) aren't finding enough oil to increase their reserves. They appear to be using higher and higher levels of technical sophistication to find smaller and smaller puddles of oil.
Although the boycott idea is naive, it reflects a genuine distrust of "Big Oil" and an unfor"
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