The law of supply and demand applies to gasoline, jet fuel, diesel and refineries. Refineries that are shutting down can't run the cheaper heavy crudes and can't make money. When you don't make money after awhile, you run out of money and you shut down or try to sell. A refinery that can't run the cheaper crudes could invest $millions for mods to run heavier crudes. Our country's desire to use less crude by mandating food crops (ethanol and soy beans) will cause refineries to close. THAT'S THE BIG PLAN. Food crops (AKA alternative energy) will ALWAYS cost more than products coming from crude. Get used to it. Nope, I do not understand retail gasoline prices.
According to GasBuddy.com, motorists are shelling out $5.89 for a gallon of regular gas at a Shell station in Lake Buena Vista, topping out at $5.99 a gallon for premium. It doesn’t get better at a Suncoast Energy station in Orlando, where drivers are paying $5.79 for a gallon of regular.
According to GasBuddy.com, motorists are shelling out $5.89 for a gallon of regular gas at a Shell station in Lake Buena Vista, topping out at $5.99 a gallon for premium. It doesn’t get better at a Suncoast Energy station in Orlando, where drivers are paying $5.79 for a gallon of regular.
I live near the Suncoast Energy Station that charges $5.79 per gallon of gas. They always charge that to rip off the people that are returning their rental cars to the airport. Just half a mile down the road they're charging $3.62 per gallon.
Art,
No I don't know what the cost are but I would imagine it would be very expensive.
I do also agree the refineries should not just pump the pollutants into the air freely with no regulation. But where does it stop?
The EPA has indeed caused so much trouble for the US and the world as a whole. It does need to be reorganized or done away with completely. But then who would watch those who dump the poison into our drinking water?
It is a catch 22 as most people call it. Dang if you do, dang if you don't.
I agree that we need more refineries in the US and we need to export less fuel. But if we actually do have the reserves in storage that everyone believes where would that leave the refineries? Would they have to cut back production because our demand is gone?
I don't know what the answer is to this problem. But I do know that $4.19 a gallon for diesel is killing this country.
Art,
No I don't know what the cost are but I would imagine it would be very expensive.
I do also agree the refineries should not just pump the pollutants into the air freely with no regulation. But where does it stop?
The EPA has indeed caused so much trouble for the US and the world as a whole. It does need to be reorganized or done away with completely. But then who would watch those who dump the poison into our drinking water?
It is a catch 22 as most people call it. Dang if you do, dang if you don't.
I agree that we need more refineries in the US and we need to export less fuel. But if we actually do have the reserves in storage that everyone believes where would that leave the refineries? Would they have to cut back production because our demand is gone?
I don't know what the answer is to this problem. But I do know that $4.19 a gallon for diesel is killing this country.
_________________
Ferrari Killer
Steve
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The EPA and feds need to take their heads out of the butts and use some common sense, this will never happen!!!!!!!!!
As far as oil reserves go, my buddy who is a chemical engineer for EXXON/MOBIL and has been for 25 years told me recently and I quote: KNOWN oil reserves in the USA at today consumption rate will last this country from 150 to 200 years,that is for KNOWN oil reserves, they estimate there is at least double that that amount of oil/gas in the USA that they have not even explored yet!!!!!!!!!!
Because commodities traders are moving little piles of money around to get rich. Trader A sells to Trader B for a profit. Not to be out done, B sells to C, C to D. Every step of the way the price goes up and money goes into a speculator's pocket.
I'm not sure how accurate this is, but I have read this elsewhere.
Myth 1: Oil refineries are not being built in the U.S. because environmental regulations, particularly the Clean Air Act, are so bureaucratic and burdensome that refiners cannot get permits.
Fact: Environmental regulations are not preventing new refineries from being built in the U.S. From 1975 to 2000, the U.S. Environmental Protection Agency (EPA) received only one permit request for a new refinery. And in March, EPA approved Arizona Clean Fuels’ application for an air permit for a proposed refinery in Arizona. In addition, oil companies are regularly applying for – and receiving – permits to modify and expand their existing refineries.[1]
I'm not sure how accurate this is, but I have read this elsewhere.
Myth 1: Oil refineries are not being built in the U.S. because environmental regulations, particularly the Clean Air Act, are so bureaucratic and burdensome that refiners cannot get permits.
Fact: Environmental regulations are not preventing new refineries from being built in the U.S. From 1975 to 2000, the U.S. Environmental Protection Agency (EPA) received only one permit request for a new refinery. And in March, EPA approved Arizona Clean Fuels’ application for an air permit for a proposed refinery in Arizona. In addition, oil companies are regularly applying for – and receiving – permits to modify and expand their existing refineries.[1]
Not very accurate according to my buddy at EXXON/MOBIL....yes they do modify and expand the refinery when new technology comes along to make them more efficient, but it takes years of waiting on the permits and paperwork from the EPA and feds before they can do anything and when they do get it, they must work within their existing land boundry lines!!!! they can't expand outside their present site!!!!!!!!
You want to hear some more of our great beuracracy at work??????
10 years or maybe a little more, Shell Oil was going to build an offshore platform, at the time it would be the largest in size and production capability and drill the deepest at that time...these rigs are built in "modules/sections" then assembled on the gulf coast at a dock or shipyard, then towed out to sea to go to work....there was only one facility in Louisiana that had the capabilityto assemble the rig,but the outlet to the gulf was only 40 feet deep and they needed a minimum of 45 feet....no big deal,dredge 2 miles of canal five more feet.......
They began the process with the Corpof Engineers and Coast Guard to get the proper permits,after they spent mucho $$$ and jumped thru all the hoops,they were told the studies would take 2 to 4 years to complete and to call back then!!!!!!!!!
Well, they found a port with the capability and water depth to do the job in South America.....They shipped all the USA made components down there along with the Shell Oil workers to over see the operations and test everything....They had the rig assembled and out to sea on location drilling for oil and gas in less than ONE year.......Thanks to South America..... my cousin was one of the engineers for Shell that was down there the whole time.......
And people wonder why jobs are being lost and sent overseas?????????????
Myth 1: Oil refineries are not being built in the U.S. because environmental regulations, particularly the Clean Air Act, are so bureaucratic and burdensome that refiners cannot get permits.
Partially correct: an oil company CAN get a permit to build a new refinery,problem is, they CAN NOT build one that will meet the standards set forth!!!!!!!!!!!!!!!!!!!
Actually, it appears that a big part of the problem is the exporting of gas and gas products due to U.S. driver conservation, high prices and hard times.
Take a look at this chart of Total Petroleum Products in the last few years....
Therefore, any amount of new production in America may simply be shipped to another country, like China where more profit can be secured, versus the market here.
Yes, it's capitalism but it's also painful at the pump. Perhaps at least encouraging (or forcing) Oil Companies to sell a specific percentage of production in America would be a way to go.
This is sort of like the cost of water - when most people conserve water the price of water goes up, not down locally. Luckily, access water cannot be sold internationally or we would be screwed, once again.
The more than passingly strange thing is - why is it that we are now exporting millions of barrels of oil products versus lowering our dependency on foreign oil and the price at the pump? Shipping oil products to foreign countries has got to be expensive versus selling it for just a little less here.
Hybrid Mode
