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Gas boomerangs on Refinery Woes
Posted by: TLB
Date: August 13, 2015 08:40AM
Mild sticker shock. Gas went up 30 cents a gallon on Tuesday and another 30 cents yesterday. 25% increase in two days. Purportedly due to problems at the Midwest's largest refinery, located in Indiana. Just last week analysts were predicting gas to drop below $2.00 after labor day. Oh well.
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Re: Gas boomerangs on Refinery Woes
Posted by: bazookaman
Date: August 13, 2015 08:52AM
You would think that with all the billions of dollars they make, they SHOULD be able to absorb that type of thing rather than asking customers to bend over.



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Re: Gas boomerangs on Refinery Woes
Posted by: GGD
Date: August 13, 2015 09:02AM
Right on time, just as predicted.

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Re: Gas boomerangs on Refinery Woes
Posted by: cbelt3
Date: August 13, 2015 09:05AM
Refinery capacity and the difficulty building more refineries is always an issue.
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Re: Gas boomerangs on Refinery Woes
Posted by: TLB
Date: August 13, 2015 09:22AM
Just saw BP announced repairs will take a month or more, so this won't be short lived.
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Re: Gas boomerangs on Refinery Woes
Posted by: Filliam H. Muffman
Date: August 13, 2015 09:30AM
Quote
cbelt3
Refinery capacity and the difficulty building more refineries is always an issue.

More like closing "unneeded" refineries. Building new crude units in the US has bee problematic for 40 years, but they like to keep production and demand very close. Gasoline sales have been dropping off and refiners have been selling all excess gas to any markets that would take it.



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Re: Gas boomerangs on Refinery Woes
Posted by: billb
Date: August 13, 2015 09:37AM
Gee
a shortage of lettuce causes lettuce prices to go up
a shortage of peanuts causes the price of peanut butter to go up
a shortage of chickens causes egg prices to go up


too many conspiracy theories, too little day



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Re: Gas boomerangs on Refinery Woes
Posted by: Acer
Date: August 13, 2015 09:45AM
When is the last time we had a genuine shortage of gas, aside from regional disruptions from a hurricane or something? 1973? And yet every time someone spills his coffee in the refinery break room, up it goes.



Edited 1 time(s). Last edit at 08/13/2015 09:46AM by Acer.
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Re: Gas boomerangs on Refinery Woes
Posted by: cbelt3
Date: August 13, 2015 09:48AM
Fill- Yup. Also regulatory changes require continued capital investment. Which is paid for by the price of gasoline.
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Re: Gas boomerangs on Refinery Woes
Posted by: billb
Date: August 13, 2015 09:53AM
Quote
Acer
When is the last time we had a genuine shortage of gas, aside from regional disruptions from a hurricane or something? 1973? And yet every time someone spills his coffee in the refinery break room, up it goes.

February and July in California.



The Phorum Wall keeps us safe from illegal characters and words
The doorstep to the temple of wisdom is the knowledge of one's own ignorance. -Benjamin Franklin
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Re: Gas boomerangs on Refinery Woes
Posted by: Acer
Date: August 13, 2015 10:49AM
Quote
billb
Quote
Acer
When is the last time we had a genuine shortage of gas, aside from regional disruptions from a hurricane or something? 1973? And yet every time someone spills his coffee in the refinery break room, up it goes.

February and July in California.

Oh, if only life were that simple. [www.dailynews.com]
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Re: Gas boomerangs on Refinery Woes
Posted by: jdc
Date: August 13, 2015 10:56AM
Quote
billb
Gee
a shortage of lettuce causes lettuce prices to go up
a shortage of peanuts causes the price of peanut butter to go up
a shortage of chickens causes egg prices to go up

too many conspiracy theories, too little day

Oh, if it were only that simple.

gas prices arent really a "conspiracy", Id call it more a "fleecing"





Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Gas boomerangs on Refinery Woes
Posted by: Zoidberg
Date: August 13, 2015 10:59AM
Rocket/Parachute Theory; fuel prices soar on any concern, and then eventually start to go down/stabilize. [blogs.platts.com]



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Re: Gas boomerangs on Refinery Woes
Posted by: ztirffritz
Date: August 13, 2015 11:10AM
Creating 'problems' at a refinery is an easy excuse to boost the price and bolster profits. It creates an artificial constraint, lowers operating costs, and boosts profits.



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Re: Gas boomerangs on Refinery Woes
Posted by: Tiki2000
Date: August 13, 2015 11:13AM
'Oh, if only life were that simple. [www.dailynews.com] '

The great industry secret revealed.
The price of a barrel has NOTHING to do with the price of a gallon of gas. It's what the refineries set it at.
The price goes up when they switch from winter to summer blend. The price goes up when they switch back to winter blend. Because they CAN. They will lower prices for a while when oil prices are making the headlines, but within a few weeks 'something' will come up to 'justify' a gas price increase.
Recently, there has been market demand in South America for refined product because South American refineries have been unable to keep up with demand. So the US refineries have seen no slow down due to decreased US demand. Also profits have increased due to low priced domestic oil which can't be sold overseas (only the refined product can).
I personally have seen 120,000 bpd of additonal US refining capacity come across my desk in the past 24 months (80,000 should be online w/in 6 months).
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Re: Gas boomerangs on Refinery Woes
Posted by: billb
Date: August 13, 2015 11:16AM
Quote
jdc
Quote
billb
Gee
a shortage of lettuce causes lettuce prices to go up
a shortage of peanuts causes the price of peanut butter to go up
a shortage of chickens causes egg prices to go up

too many conspiracy theories, too little day

Oh, if it were only that simple.

gas prices arent really a "conspiracy", Id call it more a "fleecing"

It ain't rocket science.



The Phorum Wall keeps us safe from illegal characters and words
The doorstep to the temple of wisdom is the knowledge of one's own ignorance. -Benjamin Franklin
BOYCOTT YOPLAIT [www.noyoplait.com]
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Re: Gas boomerangs on Refinery Woes
Posted by: jdc
Date: August 13, 2015 11:17AM
Quote
Zoidberg
Rocket/Parachute Theory; fuel prices soar on any concern, and then eventually start to go down/stabilize. [blogs.platts.com]

That article is a load of @#$%&.





Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Gas boomerangs on Refinery Woes
Posted by: Speedy
Date: August 13, 2015 11:19AM
If all of us just keep using less and less. Except SUV sales are soaring.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Gas boomerangs on Refinery Woes
Posted by: jdc
Date: August 13, 2015 11:32AM
Quote
billb

It ain't rocket science.

Youre right, its rocket surgery, on a much higher level.

big oil is like big tobacco or big soda/pop or big health care or pretty much any other "big" you want to throw in -- only one thing is important. $.





Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Gas boomerangs on Refinery Woes
Posted by: billb
Date: August 13, 2015 11:34AM
Quote
Zoidberg
Rocket/Parachute Theory; fuel prices soar on any concern, and then eventually start to go down/stabilize. [blogs.platts.com]

The conspiracy theorists aren't going to make it past paragraph 2.
TL, DR and doesn't support their narrative.



The Phorum Wall keeps us safe from illegal characters and words
The doorstep to the temple of wisdom is the knowledge of one's own ignorance. -Benjamin Franklin
BOYCOTT YOPLAIT [www.noyoplait.com]
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Re: Gas boomerangs on Refinery Woes
Posted by: Speedy
Date: August 13, 2015 11:37AM
Quote
billb
Quote
Zoidberg
Rocket/Parachute Theory; fuel prices soar on any concern, and then eventually start to go down/stabilize. [blogs.platts.com]

The conspiracy theorists aren't going to make it past paragraph 2.
TL, DR and doesn't support their narrative.

I read the blog from top to bottom. Between the lines, it seems that Big Oil wants to open up the west coast for off-shore drilling.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Gas boomerangs on Refinery Woes
Posted by: billb
Date: August 13, 2015 12:09PM
Quote
Speedy
Quote
billb
Quote
Zoidberg
Rocket/Parachute Theory; fuel prices soar on any concern, and then eventually start to go down/stabilize. [blogs.platts.com]

The conspiracy theorists aren't going to make it past paragraph 2.
TL, DR and doesn't support their narrative.

I read the blog from top to bottom. Between the lines, it seems that Big Oil wants to open up the west coast for off-shore drilling.


and ?

This thread is about gasoline refinery capacity.



The Phorum Wall keeps us safe from illegal characters and words
The doorstep to the temple of wisdom is the knowledge of one's own ignorance. -Benjamin Franklin
BOYCOTT YOPLAIT [www.noyoplait.com]
[soundcloud.com]
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Re: Gas boomerangs on Refinery Woes
Posted by: pqrst
Date: August 13, 2015 12:12PM
In order to be able to have gasoline available pretty much all the time (think 70's shortages), we have traded the stability of consistent prices. The market got freed up in the 80s and went international. Dealers bvuy gas on the spot martket to have product, the spot market is volitale.

PS: the drive toward just in time inventory stocking (think car parts) has pretty much become the model for all manufacturing in the world. Stockpiling is minimized as much as possible.



Edited 1 time(s). Last edit at 08/13/2015 12:13PM by pqrst.
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Re: Gas boomerangs on Refinery Woes
Posted by: Racer X
Date: August 13, 2015 08:01PM
I have a close friend in the energy business, so he's on top of all things fuel-related.

Refineries do the most basic maintenance necessary to keep a refinery producing. It costs them major money in lost profits when not cranking out product. So they run them until something fails. THEN they make repairs, maintenance and whatever they can do while it is down WITHOUT slowing the process to get it back on-line.

Refineries have spare parts on hand to get these things back on-line as quickly as possible, especially oddball one-off or obsolete hardware. A number of years ago, a substation transformer went down, taking out a diesel refinery in Washington State. The refinery HAD THEIR OWN SPARE! This is a part that the power company is responsible for. But to protect themselves, they owned a spare.

So if this refinery that just went down is out that long, it is a "planned" event, or something really oddball broke, and some component is being brought in from Ziare or the darkest parts of Cambodia, or wherever.
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Re: Gas boomerangs on Refinery Woes
Posted by: Rick-o
Date: August 13, 2015 08:04PM
Two spikes here in northern MI in the past few days. Went from $2.55 to $2.99 really fast.



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Re: Gas boomerangs on Refinery Woes
Posted by: Speedy
Date: August 13, 2015 10:02PM
Quote
billb
Quote
Speedy
Quote
billb
Quote
Zoidberg
Rocket/Parachute Theory; fuel prices soar on any concern, and then eventually start to go down/stabilize. [blogs.platts.com]

The conspiracy theorists aren't going to make it past paragraph 2.
TL, DR and doesn't support their narrative.

I read the blog from top to bottom. Between the lines, it seems that Big Oil wants to open up the west coast for off-shore drilling.


and ?

This thread is about gasoline refinery capacity.

Refinery capacity was once running at 70%. The majors had excess refining capacity, probably still do. Every time gasoline spikes the oil companies hope the public will demand more crude and more drilling because that is some in the media insist we need. Or maybe that a pipeline will be built to bring more crude to refiners so they can export the refined products.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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