Quote:
Originally Posted by burn_this_city
Just wait two years, when the extra refining capacity currently under construction worldwide comes online. You will see a substantial decrease in the price of oil. Current high prices are not due to a lack of crude, but rather a lack of refining capacity to produce gasoline and distillates. OPEC and other petroleum organizations have stated all along that this was why the price of oil remains so high.
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I'm betting that the oil prices will
increase because of the new refining capacity instead of falling. That's because today's refineries are ideally suited for light crude resulting a low supply and high demand. In contrast heavy crude because of the limited refining capacity has resulted in high supply and low demand resulting in a extreme spread between light and heavy oil. The new refineries will increase the demand of heavy oil and reduce the supply available driving the price of heavy oil up. And since Alberta's oil production is heavy good times are ahead.