re: severe trouble at mill: us oil supply threaten The US depends heavily on oil from unfriendlly nations. If anyone locks the US out, it will decrease the flow of oil.
Also, the prescriptions to manufacture US gasoline from oil are barbaric: some 40 different types to service states.
Furthermore there is a dire shortage of refineries, in particular that type that produces gasoline from heavy sour crudes.
The US has no oil policy and it is more a lasser fair attitude which governs the Govt direction to develop one.
The Greenies control where drilling can proceed and discovery on the more sensitive lands has stopped.
California has a gas field close to the coast but it won't be allowed to be developed.
Meanwhile the oil noose is tightening: Saudi Arabia now has very friendly relations with China who has managed to drill for oil there.
The Chinese are locking in oil production and oil fields from all over the world. In Venezuela, they have taken over the drilling from Exxon who refused to pay the much higher taxes.
Orinoco Belt in Venezuela holds the promise of great oil riches:
http://www.iht.com/articles/2006/05/31/business/oil.php
They are also very active in Africa and are quite happy to pay more if that is what it takes. They have interests in Kazakstan as well.
Their latest venture is off Florida and reports say they could be drilling at an angle into US oil reserves:
http://www.americanfreepress.net/html/china_starts_oil_drilling.html
The US imports 15% of their oil from Venezuela. Constant bickering could result in less supply.
It does seem that the US has taken supply of oil for granted. No doubt, the problems associated with it require a hefty premium for oil.
Gerry
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