Thursday, November 24, 2005

Opinion by Richard Ducote: Refinery in desert may not be mirage | �

Progress toward building a new refinery in Arizona continues. Mexico has agreed to allow a pipeline to be built so that Canadian oil can be unloaded in Baja California and piped accross Mexican territory.

The refinery is expected to cost $3 billion, to produce 150,000 barrels per day and to be opperational by 2010. Every little drop in the big bucket is a big help. Prices are set based on marginal supply and demand. Speculators may get tired of hoarding supplies if signs of new supply are clear.