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

[Meister]

If they were regulated, gasoline wouldn't be going over $100/BBL and $5 a gallon. Does someone have to actually spell that out for you?

Please spell it out for me.
You seem to be the gas guru with your high intelligence.
How are you going to regulate the oil cartel?
Please tell us how much an oil company makes on a gallon of gas?
Then get back to me, okay?

 

[Syphon]

In Texas, like a year ago. Which has nothing to do with the current phenomenon.

The problem is local refineries, which is why the Northeast has gas prices of $4.10 a gallon, while in Colorado, it's like $3.50.

What's your blend? That's the difference in price, it's the stupid blends.

Not to worry, obamas going to be shuttering power plants next. That's phase two.

Obama

Not to worry. In 50 years we'll be using algae.

gas can only have up to a 10% ethanol blend unless its E85, which only certain car and trucks can use. so its not really that much of an effect on price. the price is more dependent on state and local taxes, as well as geographic location. the farther it has to be transported, the more expensive it will be.

Cons like bigrebnc1775 are so stuck on the argument that because the ethanol subsidy expired that this was directly responsible for $4 gas, regardless of the fact that less than 10% of unleaded gas is actually ethanol

 

[CrusaderFrank]

Oil companies are deregulated? Do tell.....[/QUOTE]

If they were regulated, gasoline wouldn't be going over $100/BBL and $5 a gallon. Does someone have to actually spell that out for you?[/QUOTE]

What a fucking moron you are

 

[Syphon]

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

If they were regulated, gasoline wouldn't be going over $100/BBL and $5 a gallon. Does someone have to actually spell that out for you?[/QUOTE]

What a fucking moron you are[/QUOTE]
if you wanna see what gas regulation can do, just tell us all what the price of gas is in communist china.... since they actually price fix and distort their currency to keep their prices artificially low.

thus the price of a gallon of gas is not regulated, although the oil industry does have regulations that you must follow in regards to pollution and safety.

 

[Crackerjack]

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.

So basically after getting clowned on the last thread, you abandon it and wait a couple of days and start this new one hoping nobody will notice, apparently.

Enjoy your fail!

 

[CrusaderFrank]

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.

But isn't the real problem that we haven't properly inflated our tires like Obama told us to?

[ame=http://www.youtube.com/watch?v=akjXqfvLu28]Obama Insists Inflating Tires Better Than Oil Drilling - YouTube[/ame]

 

[CrusaderFrank]

Walmart needs to get into the gas business

 

[Vast LWC]

So basically after getting clowned on the last thread, you abandon it and wait a couple of days and start this new one hoping nobody will notice, apparently.

Enjoy your fail!

What the hell are you talking about?

I haven't signed on for a few days, and haven't looked at what you said in the last thread.

Now that I am looking at it:

I asked a question, that you answered with a statement, and I'm basically agreeing with your statement.

So, what is your beef exactly?

And how is asking a question, and agreeing with the answer you gave, being "clowned"?

 

[Vast LWC]

But now that you've put in your two cents...

I take it that you essentially agree that the rising gas prices are not the fault of the President? Correct?

 

[Meister]

We need to do some serious drilling....period

 

[Vast LWC]

We need to do some serious drilling....period

I don't have a problem with more drilling, honestly...

But that wouldn't help the refining situation that's causing the high prices. Crude supply is already larger than demand.

 

[Katzndogz]

In Texas, like a year ago. Which has nothing to do with the current phenomenon.

The problem is local refineries, which is why the Northeast has gas prices of $4.10 a gallon, while in Colorado, it's like $3.50.

What's your blend? That's the difference in price, it's the stupid blends.

Not to worry, obamas going to be shuttering power plants next. That's phase two.

Obama

Not to worry. In 50 years we'll be using algae.

gas can only have up to a 10% ethanol blend unless its E85, which only certain car and trucks can use. so its not really that much of an effect on price. the price is more dependent on state and local taxes, as well as geographic location. the farther it has to be transported, the more expensive it will be.

There are more blends than that! Some of them specially made for small areas.

Price effects of boutique motor fuels: federal environmental standards, regional fuel choices, and local gasoline prices. | Goliath Business News

 

[Syphon]

What's your blend? That's the difference in price, it's the stupid blends.

Not to worry, obamas going to be shuttering power plants next. That's phase two.

Obama

Not to worry. In 50 years we'll be using algae.

gas can only have up to a 10% ethanol blend unless its E85, which only certain car and trucks can use. so its not really that much of an effect on price. the price is more dependent on state and local taxes, as well as geographic location. the farther it has to be transported, the more expensive it will be.

There are more blends than that! Some of them specially made for small areas.

Price effects of boutique motor fuels: federal environmental standards, regional fuel choices, and local gasoline prices. | Goliath Business News

i never said there was only 2 blends, i simply said the blends only contain up to 10% ethanol, so the price should not vary as drastically as suggested. state and local taxes have a larger affect on pricing then blends.

 

[Crackerjack]

But now that you've put in your two cents...

I take it that you essentially agree that the rising gas prices are not the fault of the President? Correct?

No, it isn't. It's not the result of any one thing, as I explained in the other thread. It's more a result of lower domestic demand than anything else.

 

[Vast LWC]

No, it isn't. It's not the result of any one thing, as I explained in the other thread. It's more a result of lower domestic demand than anything else.

OK, I'll agree with you, that there are many factors.

But the main factor, at the moment, is the closing of refineries.

Think about this:

There have been 20 years of Republican administrations since the last refinery was built. And about half the years since then have had Republican majorities in Congress.

One of those administrations was led by the former Governor of Texas.


Yet, people claim that somehow it's EPA regulations that are stopping the oil companies from building new refineries.

As if there was some secret Hippy shadow government operating behind the scenes, controlling everything during all those Republican years.

It's not the EPA, it's the oil companies.

It's cheaper for them to refine less oil, and charge more for each gallon.

They make the same amount of money, and use less resources to do so.

 

[Crackerjack]

No, it isn't. It's not the result of any one thing, as I explained in the other thread. It's more a result of lower domestic demand than anything else.

OK, I'll agree with you, that there are many factors.

But the main factor, at the moment, is the closing of refineries.

Think about this:

There have been 20 years of Republican administrations since the last refinery was built. And about half the years since then have had Republican majorities in Congress.

One of those administrations was led by the former Governor of Texas.


Yet, people claim that somehow it's EPA regulations that are stopping the oil companies from building new refineries.

As if there was some secret Hippy shadow government operating behind the scenes, controlling everything during all those Republican years.

It's not the EPA, it's the oil companies.

It's cheaper for them to refine less oil, and charge more for each gallon.

They make the same amount of money, and use less resources to do so.

The entire bureaucracy does not change with the change of every administration.

If the industry could build more refineries, they would. It's hardly some sort of industry-wide conspiracy to not build new refineries.

 

[Vast LWC]

The entire bureaucracy does not change with the change of every administration.

If the industry could build more refineries, they would. It's hardly some sort of industry-wide conspiracy to not build new refineries.

It's not a "conspiracy theory" to think that corporations want to make more profit. It's just common sense.

 

[Vast LWC]

And new administrations can certainly change policies and personnel.

Hell, Republican congresses could have made new laws, overturning whatever blockages were supposedly in the way of new refineries.

But it never got done. Did it?

 

[Peach]

Oil companies are deregulated? Do tell.....[/QUOTE]


If they were regulated, gasoline wouldn't be going over $100/BBL and $5 a gallon. Does someone have to actually spell that out for you?[/QUOTE]
Let's SEE:

Oil Prices and Oil Company Profits - Real Time Insight - NASDAQ.com
Oil Company Profits To Blow By Last Year And It's Not Just Because Of Soaring Crude Prices - Business Insider

Nope, profits are SOARING, as is production.

 

[Peach]

We need to do some serious drilling....period

PRODUCTION & PROFITS ARE UP:

Oil Prices and Oil Company Profits - Real Time Insight - NASDAQ.com