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To: MtnClimber
The writer's logic and economic understanding is in the right place yet doesn't appear to know that commerce and agriculture move on diesel, not gasoline. Of course, that fuel has also experienced price increases due to the same factors affecting the price of gasoline. Throw in the increased cost of natural gas, add some spot shortages for spice, et Voila!...agricultural production goes down due to the lack of fertilizers which are produced from natural gas feedstocks. Now you can really get the inflationary spiral moving, along with the bonus of actual food shortages. A Progressive/Greenie wet dream...
20 posted on 11/06/2021 5:28:27 AM PDT by T-Bird45 (It feels like the seventies, and it shouldn't. )
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To: T-Bird45

I understand your point, but diesel and gasoline are to crude like yogurt, cheese, and ice cream are to raw milk, they are derivative.

Decreasing the supply of oil or milk will have the effect of decreasing the supply of things derived from it.

Of course, that is yet another area where our country is in crisis right now, one that is unknown to most people because it is not “glamorous”...that our refinery infrastructure is old, decrepit, and crumbling.

They are operating at such high capacity that they cannot go down for routine maintenance without affecting production of the derivatives severely.

The last major oil refinery (large capacity) in the USA was built in 1977!

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From the US Energy Information Administration:
As of January 1, 2021, there were 129 operable petroleum refineries in the United States.

The newest refinery in the United States is the Targa Resources Corporation’s 35,000 barrels per calendar day (b/cd) condensate splitter in Channelview, Texas, which began operating in 2019. Condensate splitters are distillation units that process condensate, which is lighter than crude oil. Splitter capacity is included as atmospheric distillation units in U.S. Energy Information Administration (EIA) data.

However, the newest refinery with significant downstream unit capacity is Marathon’s facility in Garyville, Louisiana. That facility came online in 1977 with an initial atmospheric distillation unit capacity of 200,000 b/cd, and as of January 1, 2021, it had a capacity of 578,000 b/cd.
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My guess is that this has largely to do with the Left in general, and environmentalists in particular. Damn them all to Hell.


24 posted on 11/06/2021 5:50:30 AM PDT by rlmorel (Leftists are The Droplet of Sewage in a gallon of ultra-pure clean water.)
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