In case the news missed it, this was intentional, as the climate cult and extreme-enviros wanted to get rid of refineries. It doesn’t matter if you drill baby drill if you can’t do anything with it
Gas prices surge again to record high but the driver is refineries, not oil prices
Another week, another record high for gas prices. And there seems to be no immediate relief in sight.
The average price for regular unleaded gas surged by a quarter in the past week to a record $4.86 on Monday, AAA said. That’s up 59 cents more than a month ago, and $1.81 more than a year ago.
“After a blistering week of gas prices jumping in nearly every town, city, state and area possible, more bad news is on the horizon,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “It now appears not if, but when, we’ll hit that psychologically critical $5 national average.”
Many states are already above $5 per gallon. The top 10 states with the most expensive gas are: California ($6.34), Nevada ($5.49), Hawaii ($5.47), Oregon ($5.41), Washington ($5.40), Illinois ($5.40), Alaska ($5.37), Washington, D.C. ($5.06) and Michigan ($5.05).
Most people blame higher oil prices, but the real driver of higher prices may surprise you. It’s lack of refining capacity.
About half the price of gas is from the cost of a barrel of oil. But
What consumers see quoted as the price of oil is what the refineries pay for oil. Refineries then transform that oil into products and sell those. Refiners’ prices on those fuels are closer to what consumers pay. And those prices are closer to $250 to $280 per barrel, Daniel Milan, managing partner at Cornerstone Financial Services, said.
And that’s where it breaks down, because refinery capability is way down
When COVID-19 struck and world economies closed, demand plunged for oil and gas so many companies closed their plants. Others were hit by bad weather. Some companies stopped investing in refineries because of uncertainty over how the transition to green energy would affect their business. When Russia invaded Ukraine, more refineries in Russia were taken offline.
Add into that the notion that the greenie weenies have been killing off refineries, and refusing to allow newer, more efficient, and cleaner (relatively speaking) refineries to be built. The ones that are left are pretty much at full production. Even if we doubled domestic production it wouldn’t change all that much. All you greenie weenies complaining should realize this is what you’ve been voting for.
Lol
Teach why are we exporting 100 million gallons of gas diesel and JP5 everyday? Apparently our refineries have enough capacity to sell to the highest bidders.current refinery utilization is at 92.6%
Long term average is 88%
Why under Biden are we exceeding normal utilization. Should Biden do something socialistic and tax the windfall profits of the fossil fuel producers? Drilling permits and leases approved under Bidens first year exceed those of Trumps first year.
Lol
Are they relaly trying to “cram EVs down our throats” or just trying to max out their profits?
The Keystone pipeline keeps thst Canadian oil for use her in the USA
The Keystone XL is designed specifically to increase the exporting of North American fossil fuels
Still think it would be a good idea. ?
Dear John-why is Brandon going to the Saudis begging for oil? Under Trump we were energy independent. https://www.climatedepot.com/2022/06/07/watch-morano-on-oan-tv-instead-of-begging-saudis-for-more-oil-biden-should-be-begging-u-s-drillers-for-more-oil/
Teach thete is a world market price for gas.
If we refuse to pay that it will simply be sold to the world market. That is the way it works for bulk commodities. If refinery production went up the price would stay the sand exports would go up
Every time we almost catch up to the corruption the dems throw at us something new just pops up.
https://pjmedia.com/news-and-politics/matt-margolis/2022/06/06/there-was-huge-mistake-in-the-2020-census-guess-which-party-it-favored-n1603315
Is anyone other than me waiting for Hunter to be arrested for his illegal handgun purchase/application, using illegal drugs and consorting with whores? Nah, I guess everyone is on the edge of their seats waiting to see the kangaroo court of all Democrats prosecute old people, middle class working men and women and other very unimportant (to democrats) Americans. A trial trying to prove that a protest is an “insurrection” if done by the wrong people run by the democrats in Congress, prosecuted by all democrat lawyers, and covered by all democrat “media”. That sounds as fair as it’s gonna get for us any more. It’s like living in a one party state like Cuba or Chins.
But don’t fear, justice will prevail. The New York Times is sending in a gaggle of reporters to keep things fair as well as “fact checkers” all of whom are also partisan hacks for the dems.
Hell, If the New York Times published my birth certificate on the front page, I’d seriously doubt my own existence. The democrats under first Hussein now joe the dummy have completely undone 250 years of republic. I just can’t wait to see how they build that back better with weirdo’s, uneducated minorities who think we owe them something and perverts running everything. Or maybe they just don’t and don’t care.
FJB
People seem to be under the impression that there is one price for crude; there are many prices all relatively similar, but depending on grade, location, etc.. If you’re so inclined,’OilPrice.com’ will give you probably more information than you really want, just use the google. The price for oil in the Wall Street Journal, unless specified, is generally a average basket price for a specified quantity.
Gasoline, and to some extent diesel are location specific. There are several blends for the USA, and others for the rest of the world. The market price varies accordingly. What you’ll see here is US blends.
Remember, all pricing is at the terminal. If you buy a 5k gallon unit of gasoline, you have to ship it to your destination. Same concept for a supertanker full of crude. This is of course a simplification, but you should get the idea.
Energy is a huge industry with many moving parts and dealing with serious money. They don’t trust Brandon and his handlers, so they aren’t going to take as many risks. Remember ‘Keystone Pipeline’?
Preachy Teachy is lying to you once again. Please read through his supportive link on refineries for the truth.
The EIA didn’t mention pressures from ‘greenie weenies’. They mentioned that refineries went off line because of Covid – fewer miles driven means fewer gallons of gas needed. Would you keep refineries refining crude for gasoline that wasn’t needed?
Regarding gasoline prices at the pump, the U.S. is middle of the pack. Most of Europe is over $8.00 U.S. gallon. The US has about 18% of the world’s refineries. One refinery in India has more capacity than to two largest US refineries combined.
There are some 700 refineries worldwide and about 130 in the US.
If companies and importantly investors thought is was economic wouldn’t they build new refineries?
Wasn’t DonJon Trump the president in charge of the 2020 Census?
Did Hunter Biden do it?