Another Reason Not to live in CA. Gas hits record high.

[JD8]

DPI stop trying to argue rhetoric with logic and critical thinking.


The Wall Street traders somehow caused a physical shortage in California.

 

[n423]

it's a rollercoaster ride .......................up & down.........here we go kids!!

 

[TwoForFlinching]

Another point, if it is Wall Street, please explain why gas prices are closing in on $5 per gallon in CA and dropping to $3.41 here in Tulsa this morning.

There is a spread between WTI and Brent causing refineries like HollyFrontier to bump up and max out their production. They are buying WTI at a substantial discount to Brent and selling at the Brent refined prices. That is one reason exports have gone up.

The biggest reason our refinery is making hand over fist cash on gas is because they chose to produce less of it, not because of a shortage of crude. With new frac technologies, and a substantially higher supply in these united states than was ever estimated. We're making diesel as priority, because of the substantial profit margin, greater that gasolines and lighter products. I imagine all refineries, including those in an import/port state like California, have realized the profit margin on diesel is a best return on the initial crude investment, thus driving the price Of gasoline up.

No doubt refineries are having major issues, as no new refineries have been built, all must inevitably slow production to maintain and rebuild (turnaround) aging equipment. It's absolutely rediculous to think oil companies would drive up the prices if they were unable to sell and cash in on the product.

 

[Shadowrider]

TwoFor,

This isn't Wall Street. What this is caused by is kommiefornia's own doing. They have coddled the hipster tree hugger freaks and this is what they get for it. When I was living out there a few years ago the same exact scenario happened. Their largest refinery went down due to a fire and a couple of others were off line for scheduled maintenance. In their infinite wisdom they have a law that basically says that all gas and diesel sold in kommiefornia has to be refined in kommiefornia. The logic behind this is so that they can ensure compliance with the goofy fuel blends they've mandated on themselves. In other words they are enlightened and will have none of that planet killing stuff being trucked in from outside their own little utopia. It happened when I was out there and it cost me the better part of $20 to fill my 3.5 gal tank on my motorcycle. Been there, done it, got the t-shirt. I have no sympathy for them. None at all...

 

[ByrdC130]

Actually, I have a wind electric generator on the farm. Most months the electric company pays me. I would call it a win.

All well and good, but won't do a thing to help fill your tank with gasoline. Now if you had an electric car, but hard to feed cattle from a Prius.

 

[tntrex]

What is funny is most the democraps still blame prez bushey for this. But in truth, if there was one prez(if you want to blame just one) that had more to do with the speculation problem supposedly causing all this in oil was....
.
.
.
.
.
.
.
Bill Clinton


when he signed the bill allowing it.

 

[JD8]

What is funny is most the democraps still blame prez bushey for this. .

"Wall Street" is the new "Bush"

 

[DPI]

The biggest reason our refinery is making hand over fist cash on gas is because they chose to produce less of it, not because of a shortage of crude.

There is no mention of shortages of crude in this thread. And refineries are operating at 92.8% capacity and the highest in many years. Refineries are NOT cutting production to raise prices! This is per the US Energy Information Administration. You need to read and quit spouting Obama's talking points.

 

[JD8]

I think we need to occupy something.

 

[TwoForFlinching]

There is no mention of shortages of crude in this thread. And refineries are operating at 92.8% capacity and the highest in many years. Refineries are NOT cutting production to raise prices! This is per the US Energy Information Administration. You need to read and quit spouting Obama's talking points.

Funny how there's no diesel shortage in California. While gasoline is approaching one million barrels per day in California, diesel is well above that, and still no shortage of it.

92.8% capacity, producing a bulk of diesel due to the greater profit margin on the product. Refineries chose to limit gasoline production because the profit yielded is not the biggest.

It's like trying to teach evolution to a creationist...