Midwest Gasoline to Spike $0.50-$1.00 Per gallon

[sd455dan]

I’m not sure that this tells the whole story. For example, the refinery closure at Gallup, NM. It is a very small refinery and the large refinery at Jamestown, NM, 30 miles east increased its capacity with expansion. Now the crude that was refined at Gallup goes to the large refinery. This is also the case for Gulf coast refineries; consolidation of refining but not necessarily reduced production. I would be interested in knowing what has happened with refining capacity.

Oh, by No means am I saying that is anywhere near the whole story .

But, I do believe "domestically" refining plays a role in the price at the pump ( remember when ultra low Sulphur diesel was mandated) and as far as I know refining is solely under the control of for profit corporations.
My guess is they will keep a minimum of refining capacity for whatever the demand, and it would seem the US really Should refill the reserves that were pulled to reduce prices, Which is a national defense /security issue, which also means very likely Higher prices at the pump.

 

[jyoutz]

Oh, by No means am I saying that is anywhere near the whole story .

But, I do believe "domestically" refining plays a role in the price at the pump ( remember when ultra low Sulphur diesel was mandated) and as far as I know refining is solely under the control of for profit corporations.
My guess is they will keep a minimum of refining capacity for whatever the demand, and it would seem the US really Should refill the reserves that were pulled to reduce prices, Which is a national defense /security issue, which also means very likely Higher prices at the pump.

Agree with you. But it’s interesting to read about the purpose for strategic petroleum reserves. It wasn’t established with a military purpose, but more of an economic strategy. The military has their own reserves.

 

[Hay Dude]

Agree with you. But it’s interesting to read about the purpose for strategic petroleum reserves. It wasn’t established with a military purpose, but more of an economic strategy. The military has their own reserves.

Still doesn’t mean it should be sold off to China, or drained into the US supply to gain political points.

 

[Torvy]

Agree with you. But it’s interesting to read about the purpose for strategic petroleum reserves. It wasn’t established with a military purpose, but more of an economic strategy. The military has their own reserves.

Yes. The reserves have multiple purposes, but foremost was to act as a buffer against OPEC or other actors who would intentionally disrupt supply.

The military keeps reserves of refined products that it needs, but reserve petroleum is all mixed together. Another important reason we maximize domestic production of all sources. Light Sweet crude is great for gas and diesel and av gas. Not so great for other uses.

If a ww level event kicked off soon, we would be hard pressed to keep going very long. Not only are reserves low, but transport, refining and production are all strained. Remember, production takes time. Companies were effectively compelled to pump and sell what they can, but cannot risk full investment for future production in the face of hostile authorities.

Imagine if some hypothetical leader indicated they intend to use their power to crush your industry. What incentive do you have for long-term investment? A rational actor in that case would try to maximize short-term yield and seek strategic ways to either exit the industry or advocate for regime change...likely both.

 

[WM75Guy]

Diesel today was $3.81, down from $3.90 a week ago. Twenty-six gallons to fill up the 2500HD was $100. Now that I am officially retired fuel usage should decrease.

 

[Torvy]

Diesel today was $3.81, down from $3.90 a week ago. Twenty-six gallons to fill up the 2500HD was $100. Now that I am officially retired fuel usage should decrease.

Congrats! Now we can get a bunch of us out here for a beer...or whatever.

 

[D&D]

I’m in.

Diesel today was $3.81, down from $3.90 a week ago. Twenty-six gallons to fill up the 2500HD was $100. Now that I am officially retired fuel usage should decrease.

Happy for you, not so much me. Local diesel went from 3.94 to 3.99 however 87 gas went from 3.69 to 3.45. Too bad my truck doesn’t use that, 26 gallons is half a tank

 

[oldballs]

$4.40 for diesel at QT here in mid-central eastern Kansas. This summer I cut back on mowing my place (3 acres). Every other time I mow the whole place or just around the house. ... and let it get higher at that between mowings. There's no need for my place to look like Country Club Golf Course. Besides, I'm zoned Ag anyway.

Cheers,
Mike

 

[Snobdds]

To that I say, it's all controlled by private industry. They are the culprits in the rising fuel costs, not the government. Put the blame squarely on the problem... profits.

Infographic: Oil & Gas Giants Cash in Tens of Billions

This chart shows how major oil companies' profits have increased over the past years.

www.statista.com

How can you ignore the biggest and most powerful Cartel in the history of the world and their impact on oil markets?

If we buy heavy crude from companies that are state owned, it's not simply private industry greed driving this train.

 

[MossRoad]

How can you ignore the biggest and most powerful Cartel in the history of the world and their impact on oil markets?

If we buy heavy crude from companies that are state owned, it's not simply private industry greed driving this train.

I'm not ignoring it at all. The fact of the matter is HERE in the U.S., oil is produced and sold by corporations. THERE it is all government controlled.

So it is simply private industry greed driving this train here in the U.S.

None of these companies in the U.S. do anything with the overall benefit of the U.S. in mind. It's all for profits. (yes I own oil stocks in my mutual funds).

"WE" (the United States) don't produce ANY oil or gas products. "WE" are NOT energy independent. "OUR" oil is sold openly on the world market by corporations, not "US".

Our system is completely different than most of the rest of the world. If it were held here in the U.S. by "US" we would be paying a lot less.

So if we want lower oil costs not dependent on the world market, the only way is for all oil and gas products produced in the U.S. to be sold only in the U.S. That means government takeover of the oil and gas industries in the U.S. And we all know just how well the government runs things, so that's a whole 'nuther can of problems.

For anyone to ever think that the U.S. was, has been, is, or could be energy independent with the current system just isn't thinking straight. It can't be with private-for-profit industry and a world market involved.