My2cents, I agree with you that there are some major flaws in PJKs argument. In the past 30 years US refineries have indeed become far more efficient and thus have been able to increase capacity at the same time shrinking their geographic footprint. However, the real question is in this 30 year period has demand risen at a greater rate than refining capacity? If so then your side of the argument becomes null and void. These days with everyone driving around in SUVs and almost every family having multiple cars I find it hard to believe that the gasoline demand hasn't risen sharply over the 30 year period, and that is accounting for automobile efficiency increases. Could anyone who has these statistics handy please post them. What are the 30 year rate increase for capacity and demand?
Gas at 4 bucks, is a non-issue. Gas at 10, well them we have a situation. People will pay up to 5 or 6 before the spending stops. The ones that are screwed are those in Massive debt with Credit Cards. Soon gas cards will be carrying loads of debt. Those who make money will not be phased enough. So it is one less stop at Starbucks. Who Cares, Euro-land has been paying high gas prices for decades, all be it, most of it is taxes. Nevertheless, the upper middle class will survive, the lower middle to lower end will have to adjust their spending habbits.
The US is easily #1 in per-capita gasoline/oil consumption, BY FAR. And so what about the rest of the world? This thread is about gas prices in the US. Are you saying that because other countries are wasteful, it's ok for the US to be wasteful too? If so that's a terribly weak argument.
There is some truth to what you say. Standard Oil has been put back together again, and it's a wonderful thing. We are slowly seeing the greatest fleecing of the american consumer. But I want it to stay this way and get worse. The beauty of the situation is, most americans either won't believe it, or it's too late and they are already in it. I'm an oil speculator so these are very optimistic times for me...all at the expense of the common American. Deviltrader, I don't think that ALL americans are this way...just alot of them...or ENOUGH of them I should say. We need them though. There always has to be someone on the losing side. 100$ barrel oil here we come. I'm still wondering how the stock market will react once we start trading above $70.00 for light sweet crude oil.
PJKIII- You are absolutely right. We have a problem amassing necessary stockpiles of products for the summer. But the problem doesnât exist in refining capacity the problem exists with finished product storage. Take a look for yourself: http://bp2.blogger.com/_jkAmr21xCuQ...AJM/PNYGGnJWcYM/s1600-h/missing+oil+tanks.JPG Tell me what is missing? Thatâs right, empty fields where the tank farms use to be. Do a map search on Google and look at the satellite photos of the storage facilities surrounding any refinery in the US and it is the same story time and time again. From 1982 when we had 90,207,000 barrels of U.S. refinery finished motor gasoline working storage capacity to a peak of 102,646,000 in 1994 today we rely on just 62,739,000. Thatâs a 48% decline in storage capacity in 12 years. Why is that? Because it costs money to hold finished inventory in reserve. Think about that. Oil companies today are utilizing âJust In Timeâ inventory practices just like any other manufacturer in the world today. As we all know there are two ways to increase prices. The first is by increasing demand and the second is by decreasing supply. The way the current supply/demand equation is working for the oil companies it appears that theyâll be sitting in the catbird seat for some time to come. nysetrader78- Au contraire monsieur my argument is hardly null and void. You need to read again what I had posted. In this country demand has outstripped capacity about 10 years ago. As I had also mentioned: âWe have now reached a point in time where we are outsourcing the production of our finished distillates to overseas plants much the same way any other consumer product is manufactured today.â This is where we are making up the difference between what we can refine domestically and what we need to import to satisfy our demand. I guess you missed the following on the building of what is planned to be the sixth largest oil refinery in the world: Oh, by the way, you want those 30 year stats? They're all right here: http://www.eia.doe.gov/ Go knock yourself out, and welcome to the new world order. Just, my2cents