National Average Price of Gasoline Hits an All-Time High

[Orangeburst]

You make a good point. If they weren’t so incompetent the average price of gas would already be more than $10 a gallon.

Thank you for the correction in intent and incompetence.
Only difference is in thinking this admin is trying to do the right thing for our nation

 

[85SugarVol]

Almost there, just a little bit more…..

 

[NorthDallas40]

Almost there, just a little bit more…..

View attachment 461441

Any idea where that is? Gotta be CA.

Edit: ah yeah I see the small caption CA.

 

[hog88]

Ok when is htis happening now? What refinery has not been allowed to open, now? I have not heard anything about us having a refining problem, its a crude oil supply problem, correct?

No refinery has been able to be built since the 70s. Permitting process is so expensive it’s not worth it.

 

[RavinDave]

Thank you for the correction in intent and incompetence.
Only difference is in thinking this admin is trying to do the right thing for our nation

The funny thing is, how progressives think they ARE doing the right thing, because they’re so much smarter than the average bear.

 

[NorthDallas40]

No refinery has been able to be built since the 70s. Permitting process is so expensive it’s not worth it.

Before LG says NUH UH!

There are newer condensate splitters but not true refineries. Just adding existing capacity to existing refineries.

Frequently Asked Questions (FAQs) - U.S. Energy Information Administration (EIA)

 

[85SugarVol]

Before LG says NUH UH!

There are newer condensate splitters but not true refineries. Just adding existing capacity to existing refineries.

Frequently Asked Questions (FAQs) - U.S. Energy Information Administration (EIA)

However, the newest refinery with significant downstream unit capacity 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, and as of January 1, 2021, it had a capacity of 578,000 b/cd.

 

[85SugarVol]

@lawgator1
Could any of this impact Supply?

 

[85SugarVol]

And just to highlight, all those articles ^^ are from The NY Times, Bloomberg, & Washington Post.

Not sure if they have been fact checked….

 

[lawgator1]

@lawgator1
Could any of this impact Supply?

View attachment 461463

Yes, that would be an example. I did a little update digging on this and most recent I could find is about a month ago some stories that the administration was not putting up leasing auctions for some off shore drilling. Now, the reasoning behind this is in conflict. Some say its just because of a desire to appease environmental activists. The administration says part of it is lack of industry interest in the auctions.

https://www.washingtonpost.com/climate-environment/2022/05/11/gulf-of-mexico-leasing-canceled/

At any rate, I would have to question how long it would take for a new lease to actually result in any increased production. I would think that pipeline issue for land-based wells might be a bigger issue, but I am am uncertain as to the issues there.

 

[85SugarVol]

Yes, that would be an example. I did a little update digging on this and most recent I could find is about a month ago some stories that the administration was not putting up leasing auctions for some off shore drilling. Now, the reasoning behind this is in conflict. Some say its just because of a desire to appease environmental activists. The administration says part of it is lack of industry interest in the auctions.

https://www.washingtonpost.com/climate-environment/2022/05/11/gulf-of-mexico-leasing-canceled/

At any rate, I would have to question how long it would take for a new lease to actually result in any increased production. I would think that pipeline issue for land-based wells might be a bigger issue, but I am am uncertain as to the issues there.

Would you agree that actions like those listed above, and comments from Biden of the “no new drilling” variety, might serve to have a chilling effect on Big Oil boardrooms?

 

[Septic]

Are people still blaming the president for the oil companies not drilling and refining more?

dummys.

Biden Wants U.S. Oil to Drill More. Here’s Why They’re Holding Back

U.S. producers reluctant to drill more oil, despite sky-high gas prices.

Gas prices are high. Oil CEOs reveal why they're not drilling more

Shale giants swear they won't drill more, even at $200 a barrel

Texas Survey Shows Why Oil Producers Aren't Drilling More


It's almost like people forgot that oil companies get paid money for gas.

 

[NorthDallas40]

Are people still blaming the president for the oil companies not drilling and refining more?

dummys.

Biden Wants U.S. Oil to Drill More. Here’s Why They’re Holding Back

U.S. producers reluctant to drill more oil, despite sky-high gas prices.

Gas prices are high. Oil CEOs reveal why they're not drilling more

Shale giants swear they won't drill more, even at $200 a barrel

Texas Survey Shows Why Oil Producers Aren't Drilling More


It's almost like people forgot that oil companies get paid money for gas.

Damn. It’s almost … like the petroleum industry doesn’t trust that the admin will stay their hostile attitude with the current extended olive branch to bail their asses out long enough to recoup their investment right?

Naaaaaw it’s just a personal grudge and they’d just walk away from money and profit over a personal grudge.

 

[Septic]

Damn. It’s almost … like the petroleum industry doesn’t trust that the admin will stay their hostile attitude with the current extended olive branch to bail their asses out long enough to recoup their investment right?

Naaaaaw it’s just a personal grudge and they’d just walk away from money and profit over a personal grudge.

Walk away from money? They're making more of it.

Did you see any of the links I just cited? The narrative that the president has much to do with this is a partisan talking point.

The oil execs are literally saying that they don't care about gas prices and would rather buy back stock with the huge profits they're making - they're laughing all the way to the bank while you think the president's "hostility" is the reason they aren't producing more. It's always about profit. Always.

"Discipline continues to dominate the industry," an executive from an oilfield services firm told the Dallas Fed in the survey. "Shareholders and lenders continue to demand a return on capital, and until it becomes unavoidably obvious that high energy prices will sustain, there will be no exploration spending."

 

[NorthDallas40]

Walk away from money? They're making more of it.

Did you see any of the links I just cited? The narrative that the president has much to do with this is a partisan talking point.

The oil execs are literally saying that they don't care about gas prices and would rather buy back stock with the huge profits they're making - they're laughing all the way to the bank while you think the president's "hostility" is the reason they aren't producing more.

I read three of them. Not all of them. They are doing what public companies do, manage risk based on current business environment. They will be held accountable if they sink in a bunch of capital investments with the current forced olive branch and then have their ROI yanked out from under them when the crisis passes.

Yep they’re making crazy money. And restocking their war chest for the next inevitable bust rather than invest in capital expenditures with a murky ROI horizon. It’s too bad they don’t believe the boom environment is gonna last right?

 

[McDad]

Yes, that would be an example. I did a little update digging on this and most recent I could find is about a month ago some stories that the administration was not putting up leasing auctions for some off shore drilling. Now, the reasoning behind this is in conflict. Some say its just because of a desire to appease environmental activists. The administration says part of it is lack of industry interest in the auctions.

https://www.washingtonpost.com/climate-environment/2022/05/11/gulf-of-mexico-leasing-canceled/

At any rate, I would have to question how long it would take for a new lease to actually result in any increased production. I would think that pipeline issue for land-based wells might be a bigger issue, but I am am uncertain as to the issues there.

There was a post about 1 month ago linking a story where Biden's admin raised oil royalties 50%. If accurate, that is another tangible decision increasing our prices.

 

[Septic]

I read three of them. Not all of them. They are doing what public companies do, manage risk based on current business environment. They will be held accountable if they sink in a bunch of capital investments with the current forced olive branch and then have their ROI yanked out from under them when the crisis passes.

Yep they’re making crazy money. And restocking their war chest for the next inevitable bust rather than invest in capital expenditures with a murky ROI horizon. It’s too bad they don’t believe the boom environment is gonna last right?

What business environment exists that would make a business want to spend more to bring their profits down? The oil and gas industry and their allies in Congress have pushed a false narrative that the fault of rising gas prices lies with the White House and are shamelessly preying on the fears of working families concerned about prices at the pump to extract big regulatory policy wins to enhance their future profits.

Sadly, the lies they're telling are working. The oil industry execs and OPEC+ have ZERO incentive to make less money, especially when they can pin it on the current occupant of the WH.

The CEO of Cheron recently said that oil supply isn't even the issue - it's the product. And he doesn't EVER see another refinery being built in the U.S. It costs too much, takes too long to build and takes too long for the shareholders to get a return. They make decisions in terms of years and decades.

 

[85SugarVol]

What business environment exists that would make a business want to spend more to bring their profits down? The oil and gas industry and their allies in Congress have pushed a false narrative that the fault of rising gas prices lies with the White House and are shamelessly preying on the fears of working families concerned about prices at the pump to extract big regulatory policy wins to enhance their future profits.

Sadly, the lies they're telling are working. The oil industry execs and OPEC+ have ZERO incentive to make less money, especially when they can pin it on the current occupant of the WH.

The CEO of Cheron recently said that oil supply isn't even the issue - it's the product. And he doesn't EVER see another refinery being built in the U.S. It costs too much, takes too long to build and takes too long for the shareholders to get a return. They make decisions in terms of years and decades.

Why do the refineries cost so much and take so long?

 

[McDad]

Don't different blends for different states and seasons effect prices, too?
Or is that a myth?

 

[NorthDallas40]

What business environment exists that would make a business want to spend more to bring their profits down? The oil and gas industry and their allies in Congress have pushed a false narrative that the fault of rising gas prices lies with the White House and are shamelessly preying on the fears of working families concerned about prices at the pump to extract big regulatory policy wins to enhance their future profits.

Sadly, the lies they're telling are working. The oil industry execs and OPEC+ have ZERO incentive to make less money, especially when they can pin it on the current occupant of the WH.

The CEO of Cheron recently said that oil supply isn't even the issue - it's the product. And he doesn't EVER see another refinery being built in the U.S. It costs too much, takes too long to build and takes too long for the shareholders to get a return. They make decisions in terms of years and decades.

Correct! And they are making huge profits right now some of which are offsetting losses from prior recent years as well as doing what all public companies are doing right now. Stock buybacks. Just like every other public company right now. Ain’t capitalism great?

Hey all the idiot in chief has to do is apply the Defense Production Act again right? I mean he did it for baby formula you want to tell me oil isn’t as important? What’s stopping him?

Look at it this way. If you’re lucky the economy will implode and the oil companies will be screaming for a handout and then the idiot in chief can tell them to piss off right?

 

[McDad]

What business environment exists that would make a business want to spend more to bring their profits down?

Demand will fall once consumers are convinced this isn't temporary due to Ukraine. Thanks, Biden. Less demand = less profits.

 

[Septic]

Why do the refineries cost so much and take so long?

"multi-billion" and "decade long process"

Watch Chevron CEO on Oil Demand, Costs, Refinery Closures - Bloomberg

@6:24

 

[NorthDallas40]

Don't different blends for different states and seasons effect prices, too?
Or is that a myth?

To a degree. Summer formulations cost a bit more to produce than winter formulations from what I’ve read. I think it’s more demand driven though Dave probably has a better idea.

 

[allvol123]

Are profits higher during recession or non-recession periods?

 

[Septic]

Demand will fall once consumers are convinced this isn't temporary due to Ukraine. Thanks, Biden. Less demand = less profits.

Demand is up 10% over last year, the highest demand on product in history.

Correct! And they are making huge profits right now some of which are offsetting losses from prior recent years as well as doing what all public companies are doing right now. Stock buybacks. Just like every other public company right now. Ain’t capitalism great?

Hey all the idiot in chief has to do is apply the Defense Production Act again right? I mean he did it for baby formula you want to tell me oil isn’t as important? What’s stopping him?

Look at it this way. If you’re lucky the economy will implode and the oil companies will be screaming for a handout and then the idiot in chief can tell them to piss off right?

The idiot in chief released oil from the strategic reserves and asked OPEC+ to increase production. They said no, and why wouldn't they - Rolls Royce's don't pay for themselves.

What specifically can the president do today to lower gas prices? Refining is at max capacity and we're exporting a surplus of oil - legislate and EO a refinery into existence?

If Biden could waive a wand and make energy prices low again, don't you think he would? Of course - it'd get him out of a huge hole. But he can't because that's not the way it works.