MEDIA RELEASE: TUESDAY 29th MAY 2007
Everybody is feeling a little short changed when it comes to petrol prices.
But Phil Hart, from the Australian Association for the Study of Peak Oil, is not upset with the price at the pump. Instead, he is wound up by the economists and their explanation that high prices are the fault of refineries in the United States. While there is a grain of truth to that argument, the US has for a long time required imports to make up for a shortfall in refining capacity.
To meet insatiable demand, Asian refineries are crying out for oil but producers in the Middle East can't keep up, Hart says. “Crude oil production is lower than at any time in the previous two years so somebody has to lose out. We are amongst the winners because, so far, consumers have been prepared to pay the price”.