Oil refiners exploited the crisis': Report shows oil refiners are gouging California drivers (interstate, Congress)

[scarabchuck]

Originally Posted by joosoon

Oh noes. Rich people are scared they will only be slightly more rich? We can't have that now can we.

I'm not rich, yet own stock in XOM, and I don't want to see it drop. You do realize these corporations have shareholders to keep happy, don't you ? And why would they stick their necks out, and risk losses for an administration that has clearly stated that want to put an end to the fossil fuel industry.

[cuebald]

Originally Posted by V8 Vega

Idiot Biden just canceled oil leases in Alaska and the Gulf of Mexico. Biden is 100% the reason for high gas prices and inflation.

Did Biden cause inflation and high gas prices all the way around the globe? If so, he is a lot more powerful than anyone ever suspected.

If not, your statement is utterly ridiculous.

[Mathguy]

Originally Posted by albert648

Not to mention the fact that this super duper special expensive blend of gasoline can only be competitively sold in California because it's the only place someone would actually buy it (because it's too expensive anywhere else).

CAPEX spread over fewer units of production and fewer units sold = Higher fixed cost. Turns out gasoline sold to 40 million people is more expensive per unit than gasoline sold to hundreds of millions of people by nature of fixed costs that cannot be avoided by virtue of producing that product.

This is LITERALLY economics 101. Economies of scale etc.

Yep.

This forum isn't very fond of Econ 101, Finance 101, Statistics 101 and so forth.

[Mathguy]

Originally Posted by cuebald

Did Biden cause inflation and high gas prices all the way around the globe? If so, he is a lot more powerful than anyone ever suspected.

If not, your statement is utterly ridiculous.

Totally agree Biden is not 100% to blame. It's all Kroger's fault.

But don't worry, there is no inflation, it's transitory and annualized it's only 2%.

#leadership

[cuebald]

Originally Posted by Mathguy

Totally agree Biden is not 100% to blame. It's all Kroger's fault.

But don't worry, there is no inflation, it's transitory and annualized it's only 2%.

#leadership

Trump's running buddy Putin has more to do with it than anything else.

[Mathguy]

Originally Posted by cuebald

Trump's running buddy Putin has more to do with it than anything else.

Casting aspersions on the 2016 election results? Well done, positively Trumpian of you.

Global oil production is a few % lower than pre-pandemic levels.

https://ycharts.com/indicators/world...oil_production

As such, it's a combination of a slightly reduced supply and of course increased demand.

Russia is producing oil at close to pre-pandemic levels.

https://ycharts.com/indicators/russi...oil_production


But wait, aren't you breaking ranks with the president? I thought it was the fault of gas stations?

[cuebald]

Originally Posted by Mathguy

Casting aspersions on the 2016 election results? Well done, positively Trumpian of you.

Global oil production is a few % lower than pre-pandemic levels.

https://ycharts.com/indicators/world...oil_production

As such, it's a combination of a slightly reduced supply and of course increased demand.

Russia is producing oil at close to pre-pandemic levels.

https://ycharts.com/indicators/russi...oil_production


But wait, aren't you breaking ranks with the president? I thought it was the fault of gas stations?

And Biden controls what the oil companies do now? That's how it works in Venezuela, where the state owns the means of production and gasoline is $.61 a gallon today. All he would have to do is order more production.

Are you advocating Marxism now...?

[2sleepy]

Originally Posted by done working

Calif environmental wackos kill every refining project for the last 4 decades - they get what they deserve due to no competition.

I'd love to see your source for that because the reality is that the newest refinery with significant downstream unit capacity in the US is Marathon's facility in Garyville, Louisiana. That facility came online in 1977 with an initial atmospheric distillation unit capacity of 200,000 b/cd. So if California is 'killing off every refinery project' you would expect all the other states to be picking up the slack and building refineries like crazy, right?

[2sleepy]

Originally Posted by GuyInSD

hmmm...sounds like intentionally lowering the supply;
I seem to recall hearing something about "supply and demand", and how it might affect the price of something

Trump lowered the supply of oil, not Biden:

"In an April 2 phone call, Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters" https://www.reuters.com/article/us-g...-idUSKBN22C1V4

[scarabchuck]

Originally Posted by 2sleepy

Trump lowered the supply of oil, not Biden:

"In an April 2 phone call, Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters" https://www.reuters.com/article/us-g...-idUSKBN22C1V4

Yeah, two years after he duped them to increase production, pre pandemic.

https://www.cnbc.com/2018/11/15/trum...lysts-say.html