Posted on 06/19/2022 6:25:04 AM PDT by ChicagoConservative27
I should have checked that. If that is the case, case closed. We are screwed because the govt won’t do anything to help that.
The gas prices are 100% Biden’s fault.
Maybe it’s time for a couple more?...
Also, how about some new generation nuclear...
Biden’s Marxism isn’t going well
The short answer is that refineries were shut down when the national economy was shut down and demand for refined oil products plummeted. It is much faster and easier to shut down refineries than it is to start them up, especially when there is a supply line shortage of everything you need to build or repair refineries.
Its like Stalin demanding more grain production from the peasants after he collectivized all the farms.
This is all part of the collective gaslighting to deflect blame as we lunge toward the elections.
It’s not Xiden: It’s the machine pulling his strings.
Bingo
not all refineries are the same. As an example the refinery on the shore in NJ is used to processing the type of crude oil from Russia.....very heavy crude....the crude that comes out of line 5 here in MI and the other lines that come into Chitcago are entirely different types of crude as well as the oil sands of Canada and those in the permeian basin. Its not all light and sweet. Venezuala has some nasty stuff. The crack price of each barrel is not the same nor does each barrel produce the same products.
Contributors have been assured that their competitors will be destroyed first, and they will subsequently be able to establish a monopoly position with government support.
This type of arrangement worked beautifully for big health insurance companies under Obamacare, and many Fortune 500 firms seek to carve out similar arrangements rather than engaging in messy competition with upstarts.
We removed the following refineries from total U.S. operable capacity after they closed:
The Philadelphia Energy Solutions refinery in Philadelphia, Pennsylvania: 335,000 b/cd
The Shell refinery in Convent, Louisiana: 211,146 b/cd
The Tesoro (Marathon) refinery in Martinez, California: 161,000 b/cd
The HollyFrontier refinery in Cheyenne, Wyoming: 48,000 b/cd
The Western Refining refinery in Gallup, New Mexico: 27,000 b/cd
The Dakota Prairie refinery in Dickinson, North Dakota: 19,000 b/cd
“””The left has stopped the construction of refineries for a generation”””
The left done more than that.
1. Existing refineries have been shut down because it cannot meet new environmental regulations.
2. The left keeps saying we are going to stop any use of fossil fuels.
3. The existing refineries were basically designed to produce 2 barrels of gasoline for one barrel of diesel/jet fuel. When gasoline demand gets supplied from corn ethanol and wind/solar electricity, it messes up the refinery’s ability to produce products.
You overlook the reality.......
Large refineries have been heavily modernized and enlarged. Small refineries lacked the capital to do likewise and then were unable to compete.
There is no significant lack of refinery capacity.
“””When is the last time the US built a refinery?”””
It was probably in the 1960’s that a totally new refinery was built.
Now in the 1970’s and 1980’s there were many refineries where a new, major piece of equipment was added or replaced an existing piece of equipment.
For the past 30 years I have not heard much in the way of major renovations or expanded capacity at any US refinery.
Makes sense. On 1 Nov 2020, right before the election, I paid $1.42/gal for regular at a Costco south of Houston.
Yesterday I paid $4.35, more than triple.
How so? Considering gas prices are up world wide.
“””I don’t claim to understand why prices are high”””
The short answer is when demand exceeds supply, prices must go up to equalize.
A longer answer is the cost of refining has increased since Biden took over. It takes a lot of natural gas burning to raise the temperature of crude oil to 600 degrees F in the refining process.
Add additional transport costs of both crude oil and refined products.
And a very big reason for the increased prices is the perception in the market place that Biden will continue to hinder new production of fossil fuels.
When a business perceives there will be continuing supply issues, that business will be more agressive in raising prices. Adam Smith called this the ‘Invisible Hand’.
Take a look at lumber prices in the past few years. Lumber became very expensive when people were locked in their homes during covid and many of them said: “We need to remodel this house.”
Why?
Too much money chasing too few goods
“””A question.. How can the refineries be running at 100% today when 2 years ago they were producing surplus fuel but now we are seeing shortages in everything from gas to jet fuel?”””
I would take a look at exports to Europe two years ago vs today.
“””not all refineries are the same”””
An astute statement.
All gasoline, diesel, and jet fuel produced by the refineries in the USA are the same. But the crude oils input to those refineries can be very different.
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