Why is the price of gas so high, when there's a glut in the oil supply?

[Vast LWC]

Turns out it's the fact that corporations have decided to shut down refineries to artificially raise the price of oil.

Angry About High Gas Prices? Blame Shuttered Oil Refineries - Yahoo! Finance

The average price of gas is up more than 10 percent since the start of the year, a point repeatedly made during Wednesday’s Republican Presidential debate. Predictably, the four GOP candidates blamed President Barack Obama for the steep increase.

Actually, the President doesn’t have that kind of pricing power. The more likely reason behind the price increase, though certainly less compelling as a political argument, is the recent spate of refinery closures in the U.S. Over the past year, refineries have faced a classic margin squeeze. Prices for Brent crude have gone up, but demand for gasoline in the U.S. is at a 15-year low. That means refineries haven’t been able to pass on the higher prices to their customers.

As a result, companies have chosen to shut down a handful of large refineries rather than continue to lose money on them. Since December, the U.S. has lost about 4 percent of its refining capacity, says Fadel Gheit, a senior oil and gas analyst for Oppenheimer. That month, two large refineries outside Philadelphia shut down: Sunoco’s plant in Marcus Hook, Pa., and a ConocoPhillips plant in nearby Trainer, Pa. Together they accounted for about 20 percent of all gasoline produced in the Northeast.

And there's your answer.

You can keep on trying to blame some vague "Obama policy" for high gas prices, but it turns out the high gas prices are the fault of... Big surprise... Oil Companies.

 

[Vast LWC]

Looks like the entire issue is due to the actions of the Oil producers themselves.

Interesting.

 

[Vast LWC]

Isn't this exactly what Enron did to California in the 90's?

 

[Mustang]

Here's a little factoid of interest I picked up.

10 years ago, China used about 5,000,000 bbl per day.
Today? About 9,000,000 bbl per day.
Projected to 2015? 15,000,000 bbl per day.

The US use in 2009 was 18,690,000 per day.

 

[LogikAndReazon]

Clearly because pnac, big oil and walmart have conspired against "working" americans............

 

[OtaniKitano]

Turns out it's the fact that corporations have decided to shut down refineries to artificially raise the price of oil.

Angry About High Gas Prices? Blame Shuttered Oil Refineries - Yahoo! Finance

The average price of gas is up more than 10 percent since the start of the year, a point repeatedly made during Wednesday’s Republican Presidential debate. Predictably, the four GOP candidates blamed President Barack Obama for the steep increase.

Actually, the President doesn’t have that kind of pricing power. The more likely reason behind the price increase, though certainly less compelling as a political argument, is the recent spate of refinery closures in the U.S. Over the past year, refineries have faced a classic margin squeeze. Prices for Brent crude have gone up, but demand for gasoline in the U.S. is at a 15-year low. That means refineries haven’t been able to pass on the higher prices to their customers.

As a result, companies have chosen to shut down a handful of large refineries rather than continue to lose money on them. Since December, the U.S. has lost about 4 percent of its refining capacity, says Fadel Gheit, a senior oil and gas analyst for Oppenheimer. That month, two large refineries outside Philadelphia shut down: Sunoco’s plant in Marcus Hook, Pa., and a ConocoPhillips plant in nearby Trainer, Pa. Together they accounted for about 20 percent of all gasoline produced in the Northeast.

And there's your answer.

You can keep on trying to blame some vague "Obama policy" for high gas prices, but it turns out the high gas prices are the fault of... Big surprise... Oil Companies.

Yes, the oil companies and speculators. They are enjoying the free market at its best. This is what deregulation looks and feels like. We are being held hostage by an industry that provides a necessary resource for our economy, but that's what you call capitalism.

 

[Decepticon]

I heard that if oil companies were allowed their way on everything, gas would be cheap?

I guess the people who say that are liars.

 

[OtaniKitano]

Clearly because pnac, big oil and walmart have conspired against "working" americans............

They don't have to conspire. Capitalism is working just fine.

 

[OtaniKitano]

I heard that if oil companies were allowed their way on everything, gas would be cheap?

I guess the people who say that are liars.

LOL! This sounds like something generated from their very own public relations departments.

 

[CrusaderFrank]

My, how times have changed

[ame=http://www.youtube.com/watch?v=tbzzeuYJteY]Pelosi talks about high gas prices - YouTube[/ame]

 

[CrusaderFrank]

"We have to figure out how to boost the price of gasoline to the levels in Europe." -- Obama's Energy Secretary

 

[Wiseacre]

Turns out it's the fact that corporations have decided to shut down refineries to artificially raise the price of oil.

Angry About High Gas Prices? Blame Shuttered Oil Refineries - Yahoo! Finance

The average price of gas is up more than 10 percent since the start of the year, a point repeatedly made during Wednesday’s Republican Presidential debate. Predictably, the four GOP candidates blamed President Barack Obama for the steep increase.

Actually, the President doesn’t have that kind of pricing power. The more likely reason behind the price increase, though certainly less compelling as a political argument, is the recent spate of refinery closures in the U.S. Over the past year, refineries have faced a classic margin squeeze. Prices for Brent crude have gone up, but demand for gasoline in the U.S. is at a 15-year low. That means refineries haven’t been able to pass on the higher prices to their customers.

As a result, companies have chosen to shut down a handful of large refineries rather than continue to lose money on them. Since December, the U.S. has lost about 4 percent of its refining capacity, says Fadel Gheit, a senior oil and gas analyst for Oppenheimer. That month, two large refineries outside Philadelphia shut down: Sunoco’s plant in Marcus Hook, Pa., and a ConocoPhillips plant in nearby Trainer, Pa. Together they accounted for about 20 percent of all gasoline produced in the Northeast.

And there's your answer.

You can keep on trying to blame some vague "Obama policy" for high gas prices, but it turns out the high gas prices are the fault of... Big surprise... Oil Companies.

Absolute and total bullshit. Did you read your own post, they shut down cuz they were losing money, probably in response to the high costs imposed by Obama's EPA.

 

[Vast LWC]

Clearly because pnac, big oil and walmart have conspired against "working" americans............

It has nothing to do with any conspiracy, there is a clear motivation here, and it is profit.

The oil companies are closing the refineries to drive up the price of their product.

Why does there need to be some sort of giant conspiracy here?

 

[Vast LWC]

Yes, the oil companies and speculators. They are enjoying the free market at its best. This is what deregulation looks and feels like. We are being held hostage by an industry that provides a necessary resource for our economy, but that's what you call capitalism.

Which makes the rising cost of gasoline the direct result of oil companies, not the President.

Whatever their motivation, that is the case.

And their motivation is profit, pure and simple.

 

[Meister]

Turns out it's the fact that corporations have decided to shut down refineries to artificially raise the price of oil.

Angry About High Gas Prices? Blame Shuttered Oil Refineries - Yahoo! Finance

The average price of gas is up more than 10 percent since the start of the year, a point repeatedly made during Wednesday’s Republican Presidential debate. Predictably, the four GOP candidates blamed President Barack Obama for the steep increase.

Actually, the President doesn’t have that kind of pricing power. The more likely reason behind the price increase, though certainly less compelling as a political argument, is the recent spate of refinery closures in the U.S. Over the past year, refineries have faced a classic margin squeeze. Prices for Brent crude have gone up, but demand for gasoline in the U.S. is at a 15-year low. That means refineries haven’t been able to pass on the higher prices to their customers.

As a result, companies have chosen to shut down a handful of large refineries rather than continue to lose money on them. Since December, the U.S. has lost about 4 percent of its refining capacity, says Fadel Gheit, a senior oil and gas analyst for Oppenheimer. That month, two large refineries outside Philadelphia shut down: Sunoco’s plant in Marcus Hook, Pa., and a ConocoPhillips plant in nearby Trainer, Pa. Together they accounted for about 20 percent of all gasoline produced in the Northeast.

And there's your answer.

You can keep on trying to blame some vague "Obama policy" for high gas prices, but it turns out the high gas prices are the fault of... Big surprise... Oil Companies.

Yes, the oil companies and speculators. They are enjoying the free market at its best. This is what deregulation looks and feels like. We are being held hostage by an industry that provides a necessary resource for our economy, but that's what you call capitalism.

Oil companies are deregulated? Do tell.....

 

[Vast LWC]

"We have to figure out how to boost the price of gasoline to the levels in Europe." -- Obama's Energy Secretary

Now, see, THAT is a conspiracy theory.

My OP was simply pointing out the obvious.

 

[Leweman]

If it was bush's fault in 2008 it's Obamas fault now ... them's the breaks.

 

[Dot Com]

The GObP is going to lose this argument if thats what the not-yet-chosen RINO candidate has going into the Presidential race

 

[Vast LWC]

Absolute and total bullshit. Did you read your own post, they shut down cuz they were losing money, probably in response to the high costs imposed by Obama's EPA.

They were losing money because the price of oil had fallen. Not due to anything the administration had done.

So, they closed the refineries, which caused the prices to go up.

It's quite simple really.

And it explains why there's a big glut of oil supply at the moment, and the price of gas keeps going up.

 

[Wiseacre]

You guys are nuts, an oil company shuts down a refinery that's losing money because it's costs are too high thanks to Obama's EPA, and you say it's because they want to drive up prices and they're out to get Obama. What absolute nonsense.