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Private Equity Fund Of Funds Speaking to the National Petrochemical and Refiners Association Conference in San Antonio, Fed Chairman Alan Greenspan called higher oil prices a 'tax on consumers.'If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free.

Increased oil production, high oil prices, revived light industry, and expanded export processing zones helped sustain GDP growth at about 10% in 2006.

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Analysts also predicted that heating oil prices would rise as tighter supplies and jitters over a possible war in Iraq bolster the price of crude oil. The price to consumers who call to have their heating oil tanks filled in winter could rise by 22 cents a gallon, said Dave Costello, an economist with the Energy Information Administration, the analysis arm of the Department of Energy.

Equity Income Funds April 6, 2005 (AXcess News) San Antonio TX - Speaking to the National Petrochemical and Refiners Association Conference in San Antonio, Fed Chairman Alan Greenspan called higher oil prices a 'tax on consumers.'Greenspan's comments were aimed at oil imports from the OPEC member countries in which most of the money spent on oil is being sent overseas, thus, Greenspan remarked, "higher prices act as a tax on US consumers". The Fed chairman pointed out that conservation efforts in the 1970s and 1980s curbed foreign spending on energy. But with the growing consumer demands and fewer conservation efforts oil prices are affecting the US economy. That gross domestic product has slipped, relative to America's energy bills.

Oil and gas producers are also weary of the price volatility that in the past caused them to scramble to find drilling rigs when prices were high and idle them when prices fell. "People drill based on the outlook for prices, " said Britt Dearman, a special projects executive at the Apache Corporation, an oil and gas company based in Houston. "Prices have been so volatile that companies are not comfortable" with drilling, he said.

Capital Casebook Equity Producers of natural gas have seen a decline in use, Greenspan said, due to energy efficiencies by industries such as steel mills, paper and board mills. While oil consumption has increased, no new measures to improve energy efficiencies derived from oil have been implemented that would show an economic improvement in consumption.

They briefed officials on a plan announced last week by the Saudi oil minister. It calls for steps to increase oil production capacity from the current level of 11 million barrels a day, to 12.5 million a day by 2009.White House National Security Advisor Steve Hadley calls it a very good plan. "When you increase the capacity by a significant amount, which they are talking about, that can't help but have a positive downward effect on prices, " he said.

Private Investment In Public Greenspan told oil producers that while world reserves have gone up thanks to greater exploration efforts, investment to convert reserves to productive capacity has fallen short of the levels needed to meet supply demand. Greenspan pointed to China's growing consumer demand as being a key factor in reserve to production ratios being met.

Industry analysts expect crude oil prices to stay high until some of the uncertainty around American military action dissipates. For example, if the United States attacks and oil supplies continue, the price could fall. Or the price could drop if war is averted and Iraqi exports resume. But such resolution is probably months away, far after the heating season begins.

Equity Mutual Funds In the long-run, Greenspan believes that production levels will go up to meet market demand. That in effect, the market will take care of itself.

Birmingham Contact Equity In the meantime, alternative energy sources are now becoming cost-effect measures and more energy industries are looking at ways to harness those resources through technology advancements.

Private Equity Investment Firm Trans-Canada (NYSE: TRP) has invested heavily in wind power through its subsidiary, Cartier Wind Energy, which now supplies 740 megawatts of power to Hydro-Quebec Distribution, making it the largest supplier in Quebec.AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking business news. If you're not a member, consider joining now.

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