Greed and gasoline prices

Las Vegas Review-Journal ^ | 29 may 07

[thackney]

Why would an oil company wish to spend millions (billions?) to increase their refining capacity?

Oil companies ARE spending Billions of dollars to increase their refining capacity. They are just not able to build new refineries so they are expanding and upgrading the existing ones.

http://online.wsj.com/article/SB117789455598286509.html?mod=googlenews_wsj

http://www.motivaenterprises.com/images/editor/ExpansionUpdatePressRelease.doc

http://www.panews.com/local/local_story_120184906.html

http://www.bakersfield.com/102/story/122840.html

http://www.gulflive.com/news/mississippipress/index.ssf?/base/news/117645937628530.xml

http://www.turnto23.com/news/12468302/detail.html

http://www.tucsoncitizen.com/daily/business/19103.php

Still they get held up sometimes by the environmentalists and NIMBYs as well as the courts and legislatures that cave into them.

[WhiteGuy]

Oil companies ARE spending Billions of dollars to increase their refining capacity.

Arizona refinery permit took seven years, Senate told…. any increase delayed 7 years

The expansion of a local oil refinery has been put on hold for now,… no increase here

A Mississippi Department of Environmental Quality hearing found little support among the audience Thursday for a proposed 15 percent capacity expansion…. no increase yet

Big west refinery expansion delayed for now… no increase yet

Valero recently concluded a 75,0000 barrel-per-day expansion… hooray! 75K increase

At Marathon, a Gamble on Diesel… more refined desel?

Let's be honest. In order to have a real dramatic effect on the price at the pump nationwide. dozens of new refineries would be required. None are being constructed.

Placing the blame on the elected officials who attempt to stop "proposed" expansion is little more than a diversion. No new refineries have been built in the US in decades, and the reason is simple, The oil companies can make MORE money by not increasing supply.

There is no mystery, their business model works beautifully.

At our expense.

[thackney]

We have been expanding and upgrading the existing ones. The percentage of petroleum product we consume versus what we refine is little changed in the last 2 decades.

In 1985 the US consumed 14.207 MMBPD Finished Petroleum Products
In 2005 the US consumed 18.650 MMBPD Finished Petroleum Products

1985 - 223 refineries averaged 12,165,000 barrels per day
2005 - 148 refineries averaged 15,578,000 barrels per day

They closed smaller, less efficient refineries while expanding and upgrading many of the other.

U.S. Finished Petroleum Products Product Supplied
http://tonto.eia.doe.gov/dnav/pet/hist/mtpupus2a.htm

In 1985 we refined 86% of the finished product we used.
In 2005 we refined 84% of the finished product we used.

U. S. Operable Crude Oil Distillation Capacity
http://tonto.eia.doe.gov/dnav/pet/hist/mocleus2a.htm

U.S. Gross Inputs to Refineries
http://tonto.eia.doe.gov/dnav/pet/hist/mgirius2a.htm

[thackney]

The 2006 numbers are similar and can be found by my previous links, choose monthly rather than annual and average the year.

In 2006 the US consumed 18.422 MMBPD Finished Petroleum Products

2006 - refineries averaged 15,598,000 barrels per day

In 2006 we refined 85% of the finished product we used.

Both 2005 & 2006 had significant long refinery outages due to Katrina and Rita Hurricanes.

[Osage Orange]

3.04 for unleaded....and 2.39 for diesel here in OK.