Re: Lets Get the GAS Prices DOWN
Whine, whine, whine.
You present no case against "BIG OIL". Your grandfather would be embarrassed.
Now Now JB......let us take a closer look
The money trail and damm old news
Now here come's the mighty Regan deregulation era, and the dismantleing of our infrastructure... err there's actually
http://www.eoearth.org/article/Energ..._United_States
The United States experienced a steep decline in
refining capacity between 1981 and the mid-1990s. Between 1981 and 1989, the number of U.S. refineries fell from 324 to 204, representing a loss of 3 million bbl/d in operable capacity (from 18.6 million bbl/d to 15.7 million bbl/d), while refining capacity utilization increased from 69 percent to 87 percent. Much of the decline in U.S. refining capacity resulted from the 1981 deregulation (elimination of price controls and allocations), which effectively removed the major prop from underneath many marginally profitable, often smaller, refineries.
Refinery closures have continued since 1989, bringing the total number of operable U.S. refineries to 148 as of January 1, 2005. In general, refineries that have closed were relatively small and had less favorable economics than other refineries in their
market area. Also, in recent years, some smaller, less-economic refineries that needed additional investments for environmental reasons in order to stay in business found closing preferable because they predicted that they could not stay competitive in the long term.
While some
refineries have closed, and no new refineries have been built in nearly 30 years, many existing refineries have expanded their capacities. As a result of ?capacity creep," whereby existing refineries create additional refining capacity from the same physical structure, capacity per operating refinery increased by 28 percent over the 1990 to 1998 period. Overall, since the mid-1990s, U.S. refinery capacity has increased from 15.0 million bbl/d in 1994 to 17.1 million bbl/d in September 2004. As of November 4, 2005, utilization of operating capacity at U.S. refineries was averaging around 84 percent, down from 91 percent on September 16, 2005 following Hurricanes Katrina and Rita.
For the past few decade's they have been shutting down reifnery's and not just a few
And some more............
There are structural problems with the oil/gas industry that prevent if from being a truly market driven industry. Normally you would expect that reduced refining capacity would result in lower crude prices. The supply of crude would rise because the refineries couldn't handle more, and the price would therefore fall. Thus, oil companies would have an incentive to increase refining capacity.
But, because of monopoly structure of the industry, it doesn't work that way. Rather than lowering the price, the industry *raises* crude prices in order to cut demand at the pump. Thus ... no incentive to increase refining capacity.
In fact, they have been steadily reducing capacity. Between 1995 and 2001 there were a total of 24 refinery closures in the United States.
Senator Ron Wyden ordered a comprehensive report on the refining industry some years ago. Some interesting findings:
"[They] uncovered several memos and internal documents from major oil companies. These charted the way that capacity in the US refining industry was reduced to maintain higher profits.
Wyden received one such memo from oil company Texaco, written in 1996. The company felt it was quite clear that petrol supplies needed "reducing."
"The most critical factor facing the refining industry on the West Coast is the surplus refining capacity, and the surplus gasoline production capacity," said the memo.
"The same situation exists for the entire US refining industry. Supply significantly exceeds demand year-round. This results in very poor refinery margins, and very poor refinery financial results. Significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline."
So tell us again how free market controls are working here?
OTOH, I'd personally like to see gas prices double or triple. It's the only way this country will get serious about alternative energy.
There are structural problems with the oil/gas industry that prevent if from being a truly market driven industry. Normally you would expect that reduced refining capacity would result in lower crude prices. The supply of crude would rise because the refineries couldn't handle more, and the price would therefore fall. Thus, oil companies would have an incentive to increase refining capacity.
But, because of monopoly structure of the industry, it doesn't work that way. Rather than lowering the price, the industry *raises* crude prices in order to cut demand at the pump. Thus ... no incentive to increase refining capacity.
In fact, they have been steadily reducing capacity. Between 1995 and 2001 there were a total of 24 refinery closures in the United States.
Senator Ron Wyden ordered a comprehensive report on the refining industry some years ago. Some interesting findings:
"[They] uncovered several memos and internal documents from major oil companies. These charted the way that capacity in the US refining industry was reduced to maintain higher profits.
Wyden received one such memo from oil company Texaco, written in 1996. The company felt it was quite clear that petrol supplies needed "reducing."
"The most critical factor facing the refining industry on the West Coast is the surplus refining capacity, and the surplus gasoline production capacity," said the memo.
"The same situation exists for the entire US refining industry. Supply significantly exceeds demand year-round. This results in very poor refinery margins, and very poor refinery financial results. Significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline."
The real truth
http://www.senate.gov/~levin/newsroom/release.cfm?id=283456
The bill targets energy commodity markets that are currently exempt from government oversight under the ?Enron loophole,? a provision inserted at the behest of Enron and other large energy traders, without debate, into the Commodity Futures Modernization Act of 2000. The ?Close the Enron Loophole Act? would subject those energy markets to Commodity Futures Trading Commission (CFTC) oversight to prevent price manipulation and excessive speculation.
The bill targets energy commodity markets that are currently exempt from government oversight under the ?Enron loophole,? a provision inserted at the behest of Enron and other large energy traders, without debate, into the Commodity Futures Modernization Act of 2000. The ?Close the Enron Loophole Act? would subject those energy markets to Commodity Futures Trading Commission (CFTC) oversight to prevent price manipulation and excessive speculation.
Quite frankly this is boring old new's and today we are facing some very serious issues Amercia has never faced. Big money is trying to destroy the american dream.
If anyone person doubt's there is a 1000 year's of oil in the ground i will find my old post's and link you all up
But in the true spirit of entertainment i will post a link of a old man that seem like a huckster.... now listen to his sermon and take some fact's and do a little googleing it will schock you...actually i might just do it for you ..... now for the record the money behind oil has no polotic's actually they own any and all idology..
enjoy and laugh but take notes and do some of your investigation.....
http://video.google.com/videoplay?docid=3340274697167011147
Now my dear JB if i can
conclusively prove a 1000 years of oil in the ground....can we get back to good old polotic's .....i know what i have said
Just a opinion your milage will vary..
