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September 24, 2007

Stop financing those defiant--Build more refineries in the US

There is one thing which America has not yet tried to get rid of dangers abroad: to build new oil refineries for itself. And it will work far better than an armed attack to some of defiant oil-producing countries.

Oil prices have been on constant and steep rise since Sep. 11, 2001. It is good to secure the support of the Gulf countries to the Iraq war, however, it is effectively working as a Marshall Plan to those countries which use the oil income and challenge the world community.

One of the reasons of the high oil prices is the lack of oil refineries in the USA. America out of several reasons has not built new refineries for the past decades. This causes the shortage of stock of oil products, which in its turn, bloated by speculation money (a large part of it is oil money), pushes up the oild price indicator in New York Mercantile Exchange, the benchmark used in the rest of the world as well. This is a vicious and even ridiculous cycle.

If new refineries are to be built and the oil prices plummet, then, these countries will lose resources to continue their defiance.


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