What we need are more refineries. Oil's there. But if you can't make it into fuel oil or gasoline, what good is it?
"What we need are more refineries. Oil's there. But if you can't make it into fuel oil or gasoline, what good is it?"
BINGO.
Pay thanks to GORE and crowd for that.
Ayup. There are actually tankers full of oil floating around the atlantic, because they have no place to put it.
What we need is tighter enforcment and regulation of the futures market and prosecution of those guilty of manipulating it. This is why gas is high right now, it has NOTHING to do with shortages of supply or increase in demand... just pure and simple greed and corruption in the futures market.
We need to start drilling in ANWR, we need more refining capacity, we need to push alternative fuels and business and government together need to seriously push hybrid veichles.
Absolutely correct.
We need more refineries and now.
What we also need is to reduce dependence on foreign energy sources.
Does anyone have proof that the refineries are the bottleneck when it comes to gasoline cost/production. I have heard this many times now, but have never seen any documentation which proves the case. Do we have excess crude coming into the country that simply cannot be refined fast enough? Any links would be appreciated.
And an end to the stupid requirement to add 10% Ethanol, which is resulting in regional shortages.
IIRC: A good refinery can get about 37 gallons of gasoline from a barrel of oil. With the cost of oil at $75/bbl at the well head that means the cost of raw materials is right at $2.00/gal at the well head since taxes are about $.40/gal that makes the cost of a gallon of gasoline $2.40/gal. add to this crude oil transportation costs, refining costs, additive costs and distribution costs it looks to me that $3.00/gal gasoline is not really such a bad deal. When crude prices drop $10/bbl then the gas cost drops about $.24/gal with all others costs fixed.
Sure the oil is there but everyones so damned concerned about breaking a blade of grass while trying to drill.
An interesting look at some numbers I have heard on Hannity and Rush.
42 gallons of oil in a barrel. Current price is 72 dollars per barrel. That's about 1.79 per gallon (or 57 percent of the final cost of a 3 dollar gallon of gas) 1.79 before it's even shipped or refined. Brutal.
That's not even taking into account the reported .60 cents per gallon some poor sucker in New York (the common man if you will) pays PER gallon in taxes.
If the oil companies make about 10 percent (lets say 30 cents a gallon for kicks), and the gas station makes about 10 to 18 cents per gallon, then WTF is with the State's making TWENTY percent of the cost per gallon.
Twenty percent in NY per gallon. Brutal. That would be about 4 dollars of tax for my rig per fill-up.
And we have more socialism to look forward to from congress when they start blaming the oil companies and regulating the market.
And it's all Bush's fault? I put the blame squarely on the RATS. No refineries. No ANWR drilling. No Gulf of mexico drilling (at least not by us). No California off shore drilling.