Posted on 03/11/2010 7:10:28 PM PST by Kartographer
Some of the nation's biggest oil companies are looking at permanently reducing how much gasoline and diesel fuel they make, a move that analysts say would almost certainly trigger higher prices for drivers.
Energy companies are suffering huge losses from refining because of slumping gasoline use -- a product of the economic downturn and changing consumer habits and preferences. Energy experts say refining cutbacks have begun and will accelerate as corporations strive for profits.
(Excerpt) Read more at latimes.com ...
We might have to equip cars with sails and pedals.
Ping.
Thanks for pinging Thackney-
Our own FR Energy Resource...:)
Some of the nation’s biggest oil companies are looking at permanently reducing how much gasoline and diesel fuel they make, a move that analysts say would almost certainly trigger higher prices for drivers.
How long until the oil company fans show up to defend this?
LOL. Don't you just hate those evil corporation that "strive for profits"?
And this coming from the LA Times, a company that has to look in their rear view mirror if they want to see what profits actually look like. This company can't die soon enough for me. I stopped supporting them 25 years ago, well before the Internet became the news source of choice, for one simple reason: ultra-liberal, ultra-biased reporting.
Not defending it, however I have heard from other sources about reductions in capacity due to anticipating the carbon cap regulations. The snake oil Lysenko “science” turning into law at one point did look very likely, and we’re not out of the woods yet, with an Administration bent on destroying the economy regardless of the facts. In fact that is the aim, destroying the economy (putting the United States, and the eeeevil West, in its place).
Agree........ a valued, trusted source of good common sense facts on the subject.
A strange story after years of hearing how no new refineries had been built in the US for years due to enviro regulations, and how we had a shortage of refining capacity and would have to begin importing gasoline. Now a leveling of demand requires a reduction in refining capacity. It would have been a better article it they’d given some demand numbers for the years discussed, before and after 2007.
De nada.
this should be illegal.
Strangely enough, it reminds me of the unintended consequence of all that "driver training," "safety training" and drivers education going on. Well guess what. It worked.
Untended consequence? Less traffic tickets.
So much so that to keep the revenue flowing they would have to triple and quadruple the fines. Knowing the general public would never stand for $1,200 “10 over” tickets they simply maintained the fines at their current levels... and you pay the fine three times, three years in a row.
Same with the price of gas. Build fuel efficient cars and offer incentives to get the older cars off the road, guess what? Total gas consumption goes down. Total profit becomes smaller. Sooo, you cut the refineries back to run at oh, say 75% capacity. The folks over at the futures market point at the government reports of total gasoline stockpiles and they are going down. Stupid investors fall for this BS and throw cash into the gasoline futures and presto, the price goes up.
Ya know, I did not see a single damn one of the petroleum refining companies talk about shutting down a single refinery when gas was over $4.00 a gallon... they were running those refineries at an average of OVER 95% capacity.
Whats that companies, making business decisions to help their bottom line?
Maybe Obama should just take over the oil industry like his buddy Hugo did in Venezuala.
actually in this one area , yes, i do think the government should be involved. I can’t believe that i’m saying this but considering our entire economy’s well being hinges on fuel costs...
Gee, imagine that. A company keeps a refinery open when its making money, but closes it when its not profitable. Who'da thunk it. The nerve of them.
Possibly, but I'd like to see some real numbers for those years, such as: how many barrels per day were required for refineries from 2005 - the latest year available. I'm not convinced demand for gasoline is actually down. Maybe leveling off, or increasing very little. But, those numbers are available, so where are they???
He already stated that he wanted to tax oil companies in order to cut oil consumption. Thats the whole idea of cap and tax. Its not just fossil fuel electrical plants. It includes oil companies to. IIRC Obama said something about $7 a gallon gas, during his campaign.
yeah, i’m not really for obama running things but something has to be done considering its a monopoly.
The profits of oil companies are 8-11%. Compare that to most retail stores you shop at. Compare that to pharmaceutical companies. Heck, compare that to most any business.
You really need to read the article.
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