From Michelle Malkin:  (I stole her Headline)

Good news! Gasoline supply to be increased, with seven new refineries!
June 12, 2008

Bad news!

They’re in Iran.

A senior Iranian official said the refineries would increase capacity by more than 1.5 million barrels per day and end gasoline imports.

The official said all seven refineries would begin operations by 2012.

If they don’t need to import gasoline, then I’m guessing the “we’ll embargo sales of gasoline” plan I discussed here will be pretty much moot. It might put some near-term pressure on them but unless all these new refineries are sabotaged or destroyed, there won’t be much leverage left there.

So, back to the drawing board.

Don’t say I’ve never said anything nice about the mullahs: Iran recognizes a strategic vulnerability, and they do something about it. Unlike our own unclued caribou-smooching clownshow.

...all the while, Nancy Pelosi refuses to allow the new Republican bill to drill and build new refineries to come up for a vote...along with the Columbia Fair Trade Act and the Wiretapping Bill...she's a dictator.

I love Michelle but she misses the point here.  Any increase in gasoline refining capacity increases global supply which should, all things being equal, lower the price of the commodity.

If the Mullah’s refine their own oil into gasoline then they aren’t buying from the source they used to buy from.  Which means that source will gladly sell to someone else at a fair market price.  

Now, as far as the “all things being equal” when the Israelis finally start bombing Iran to destroy their nukes they just might hit a few oil and gas facilities which could mess up the whole equation.  Once that happens $135 a barrel will look cheap.  

Once again, our leaders have put the nation at grave risk by failing to reduce dependency on foreign oil.  We have turned a blind eye to this for thirty years and we are about to pay the piper.

I agree with the last poster, it will help global supply out a great deal. I do, however, think that we should drill in our own territories AND increase research and production of other energy sources including nuclear, water, solar and wind technologies. We need to be more energy independent. I don't think bio-fuels are the way to go unless they can find a source other than a major cash crop that is used for food for millions of people. As it stands right now, it costs more than oil to refine it, therefore it's not efficient. We will be dependent on oil for a long time, but I don't think we should ONLY drill more or ONLY research more technologies. Drill for now but really work hard at the long term. We had an oil crisis 30 years ago and drilling more oil only bought us 30 years, so now here we are again in the same position. I hope congress can get their heads out of the butts, strap up and get some things done. The oil companies are not the ones who are at fault here, it is the enviornmentalists and anti-oil lobbyists who put up the road blocks that lead us to this problem with the restrictions they put in place.

How will this increase supply?  They're refineries, not oil wells.  No more OIL will be put into the global market.  The only thing that will happen is that Iran will have cheaper gasoline, because they will no longer export oil to be refined elsewhere and then re-import the refined product.

Historically, the U.S. doesn't import gasoline (although we've recently started to do so because of our own limited refining capacity), we import OIL.

There may be a slight drop in gas prices (in several years when the refineries are built), but what WE need is:
a. More of our own refining capacity, AND
b. More OIL (not gasoline) -- specifically, DOMESTIC oil.


The point, I think, is that Iran is smart enough to STOP the ridiculous practice of having their oil refined elsewhere while the U.S. is daily becoming more and more dependent upon the same inefficient and costly practice (because we cannot build our own refineries).

Eyas wrote:How will this increase supply?  

Historically, the U.S. doesn't import gasoline (although we've recently started to do so because of our own limited refining capacity), we import OIL.

You asked and answered your own question.  Gasoline is in tight supply in the USA every spring and early summer because of lack of domestic refining capacity.  If there is more refining capacity in the world it is possible that we could import gasoline when we artificially cause our "reformulation" problems at seasonal times.  

Eyas wrote:There may be a slight drop in gas prices (in several years when the refineries are built), but what WE need is:
a. More of our own refining capacity, AND
b. More OIL (not gasoline) -- specifically, DOMESTIC oil.

Obviously, we need to increase our domestic oil and refining capabilities.  I don't think anyone has argued that point.  I was simply pointing out the obvious.  Building more refineries anywhere in the world would increase global refining capacity and should therefore allow for the increase of gasoline supplies, world-wide, all things being equal.

Eyas wrote:The point, I think, is that Iran is smart enough to STOP the ridiculous practice of having their oil refined elsewhere while the U.S. is daily becoming more and more dependent upon the same inefficient and costly practice (because we cannot build our own refineries).

Yes, we should try be at least as rational as our enemies.  The fact that they are pushing for self-sufficiency is important to note.  For some reason they see that as a weakness.  For some reason our Congress doesn't.  Our Congress is less rational than the Mullahs of Iran.  Scary realization.

paleocon wrote:  Our Congress is less rational than the Mullahs of Iran.  Scary realization.

You know, I didn't think of it in exactly those terms; excellent point.  It's not simply that Congress is stupid, or out of touch; they are purely suicidal in a way that would boggle even a suicide-bombers mind.

It always amazes me that members of Congress are so elitist that they feel that they can remain untouched by even the most destructive of their own actions.  First, their assumption that somehow they will remain part of some ruling elite if/when the U.S. becomes a Communism is false (99% of them would likely be murdered by a more aggressive communist who views them as opposition). Second, they're so greedy for power that they will destroy that which they would rule, simply so that they can be "rulers" of it.  Oblivious of the fact that when America is gone, they'll be Senators of nothing.  Kings of a dung-heap.  "At least we'll be kings", they think to themselves*.


*Reminds me of Nigel from Spinal Tap saying, "Yes, but these go to eleven."

Eyas wrote:

paleocon wrote:  Our Congress is less rational than the Mullahs of Iran.  Scary realization.

You know, I didn't think of it in exactly those terms; excellent point.  It's not simply that Congress is stupid, or out of touch; they are purely suicidal in a way that would boggle even a suicide-bombers mind.

Of course it is an excellent point.  I am most insightful.   You may heap superfluous accolades upon me now.  

Eyas wrote:It always amazes me that members of Congress are so elitist that they feel that they can remain untouched by even the most destructive of their own actions.  First, their assumption that somehow they will remain part of some ruling elite if/when the U.S. becomes a Communism is false (99% of them would likely be murdered by a more aggressive communist who views them as opposition). Second, they're so greedy for power that they will destroy that which they would rule, simply so that they can be "rulers" of it.  Oblivious of the fact that when America is gone, they'll be Senators of nothing.  Kings of a dung-heap.  "At least we'll be kings", they think to themselves*.

*Reminds me of Nigel from Spinal Tap saying, "Yes, but these go to eleven."

To some degree, at least for some time, a ruling elite can remain untouched, and actually prosper, from their economically destructive decisions and actions.  Look at the ruling elite in any 3rd world nation.  The ruling class in the Philippines or Russia live far better everyone in the local dung-heap and they live as well or better than 95% of all Americans.  They want for nothing.  No matter how poor the working class is, the ruling elite can always exploit more from them.  

Of course, there is, theoretically, a breaking point.  At some point, the working class can revolt against the oppression.  But, look at how much the Filipinos put up with without revolting!  The smarter ruling elite will cleverly join the revolution at an opportune time and continue to exploit the people from the new revolutionary government.  It is sickening but it happens all the time.  If they have to throw one of their own to the "dogs" from time to time they can live with that.  The trick is to decide who is sacrificed!  

I confess, I have never watched Spinal Tap from start to end so I don't quite get the reference.  I assume he is speaking of the volume on his amp or guitar and declaring it superior because it goes from 1 to 11 instead of 1 to 10.

paleocon wrote:
To some degree, at least for some time, a ruling elite can remain untouched, and actually prosper, from their economically destructive decisions and actions.  Look at the ruling elite in any 3rd world nation.  The ruling class in the Philippines or Russia live far better everyone in the local dung-heap and they live as well or better than 95% of all Americans.  They want for nothing.  No matter how poor the working class is, the ruling elite can always exploit more from them.  

Of course, there is, theoretically, a breaking point.  At some point, the working class can revolt against the oppression.  But, look at how much the Filipinos put up with without revolting!  The smarter ruling elite will cleverly join the revolution at an opportune time and continue to exploit the people from the new revolutionary government.  It is sickening but it happens all the time.  If they have to throw one of their own to the "dogs" from time to time they can live with that.  The trick is to decide who is sacrificed!  

You're right.  Im just wondering if all of the folks who dream of their communist Utopia will end up actually being a part of that elite.  Not just members of Congress but especially people like college profs and journalists and, most especially, recent graduates with their unbearably misplaced elitist attitudes.  I just want to smack them.

paleocon wrote:I confess, I have never watched Spinal Tap from start to end so I don't quite get the reference.  I assume he is speaking of the volume on his amp or guitar and declaring it superior because it goes from 1 to 11 instead of 1 to 10.

Exactly, but describing it doesn't do justice to the cluelessness of Chris Guest saying it as Nigel.