Posted on 04/25/2006 2:40:18 PM PDT by keithtoo
Crude oil and gasoline futures fell Tuesday after President Bush gave the Environmental Protection Agency the authority to relax regional clean-fuel standards to attract more imports of gasoline to the United States and to make it easier for supplies to be moved from one state to another. President Bush also said he would halt deposits of oil to the nation's strategic petroleum reserve until the fall, but analysts said that measure would have next to no impact on crude prices and certainly would not help make gasoline any cheaper. Even the fuel-specification waivers will have a marginal impact, analysts said, given that the main force behind today's soaring pump prices is the near-record price of crude oil.
The cost of raw crude might be relatively low, but there's a very important point to note here. The cost of refining is a major component of the price, and refining costs have increased dramatically in recent years as the U.S. has imported more and more oil from places like Canada and Mexico. This oil is not the light crude that is ideal for refining into gasoline, so it takes a lot more effort to make gasoline out of the heavier crude.
Bush bashing and blatant lies about the President are his standard M.O.
This oil is not the light crude that is ideal for refining into gasoline, so it takes a lot more effort to make gasoline out of the heavier crude.
------
True. Lots of variables.
Their religion is straight out of the Lake of Fire. And that is where their prophet and false god are too.
They destroy because that is what false prophets and false religions do.
Ultimately, they are destroying themselves.
The usual comparison of prices regarding crude and the products is 3:2:1. It's not quite precise, but has been an excellent metric for decades. 3 x price of crude - 2 x price of unleaded - 1 x price of #2 oil (heating oil, fapp).
Even so, you are far closer to accurate than was Eagle's little rant.
There's a lot of that going around lately.
I feel somewhat of an obligation to refute them when I notice them.
The trolls have seriously infested the forum. They pretend to be "conservatives" but then spout the standard DU style talking points.
Plus new EPA regs are forcing more and more steps into the refining process.
Higher sulfur standards require additional washing and lower volume.
Tightened benzene standards are next
MTBE is being discontinued and Ethyl alcohol requires additional refining steps before it can be added or the vapor pressure increases beyond Federal limits. (Pentanes and Butanes have to be fractionated out.)
Plus, don't forget significant mileage decreases with the addition of ethylk alcohol to gasoline.
Trolls need the truth too.
They are only trolls because they have been fed trollish diets and not been properly cared for.
And association with other trolls has made them into bad-tempered dwarfs (mental midgets) with no sense of humor.
So keep feeding them the truth.
:)
Just how many did they close? Refinery capacity has increased 13% in the last decade. Granted that isn't enough, but a lot of existing refineries continue to be expanded.
Both statements are incorrect.
----- Your model looks like it was created by the oil companies...:-) --- it leaves out profits at the manufacturing, wholesale and retail levels. No way that crude is near 55%. Not at todays inflated prices.
$75 dollars/barrel divided by 37 gals/barrel equals $2.03. After refining costs today I think remember $2.23 a gallon wholesale before taxes, distribution, and retail.
If sweet oil ~37 gals. gas to a barrel of oil. If heavy oil less.
Only 30% of the refineries in the world can handle sour heavy oil. US refineries have been updated and 2/3 can handle sour oil. If not for that ingenuity and investment by US oil companies gas would be a lot higher.
And you probably drive one of them little 'foreign' cars...
You're right...Out of a barrel you also get jet fuel as well as the oils that don't require nearly as much of the refining process such as paint thinners, diesel fuels, motor oils and the least refined go into things like plastics...
I forget the percentages of how much of a barrel of crude goes where...
But at 10-12 bucks a gallon for laquer thinner, it's easy to see why they are making astronomical profits...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.