Gas Prices to Spike?
Submitted by 2bfree on Thu, 09/11/2008 - 20:28
Hello, I live in Southeast Missouri and the gas stations are teaming with customers today. They have already raised prices at the stations in anticipation of the Texas Hurricane. They say it might take out some oil wells on the Texas gulf. My question IS, do we get our oil directly from these sources, enough to create a dollar or more spike in gas? What the heck is going on here?
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Gas prices
We only actually produce about 34% of our oil in the country; the other 66% is imported.
Our biggest import resource is Canada, followed by Saudi Arabia, Mexico, and Venezuela. You can see a breakdown of the amounts by reading the Energy Information Administration's statistical board.
Texas itself doesn't produce a hell of a lot of crude oil, but it does have 25 major oil refineries that process 4.6 million barrels per day, accounting for about 25% of the country's total refining capacity.
That's where the spike would come from- not the disruption of oil production, but in the processing efforts. If the refineries get taken down, gas production goes to shit, so the oil companies hike the price to cover their expenses until the refineries come back online. At least that's how I understand it.
here is why
I think there is a spike in gas. Number1, the texas hurricane, 2, opec anounced it will cut production in oil meaning the price will go up 3 greed of the stations and oil companies. You have nt seen nothing yet wait till USD falls lower.
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OPEC had nothing to do with it
The price of crude has gone down since OPEC made their announcement, it's only gasoline that's more expensive.
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No
No, the potential damage to an oil pumping platform is of very little consequence to the price of gasoline. This is a 300+ billion gallon per day worldwide market, and some down time on wells wouldn't mean much at all.
The disruption of a hurricane is due to the possibilty of refineries being damaged and losing function. The American refineries are the only ones to make gasoline for the US, and they can barely keep up with gas consumption in America under normal circumstances.
If you look at the market prices over the last few days, the price of a barrel of oil has come down very steadily for quite some time, but the wholesale gasoline price has gone up. The gasoline shortage we're feeling now is from the last hurricane (Gustav?) when they abandoned the refineries, production was suspended.
We don't get our oil directly from these sources, more from Canada and Saudi Arabia, but we do get all of our gasoline.
It shouldn't last long.
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sounds like to me they
sounds like to me they better make more refineries and put them all around!
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With you
Definitely need some more refineries, or need to bring our gasoline laws in line with the rest of the world, so maybe we could import some gasoline and make the oil companies compete with foreign refineries to keep them honest and competitive.
Being afraid of importing oil is mercantilist and backwards, with an industry so heavily reliant on a huge amount of capital investment, having protectionist measures (masked as EPA standards) ensures they don't have to build new refineries, because they have a monopoly guarenteed by heavy regulation.
What do you think about the war on drugs?
How about Operation Wall Street?
Shout it today!
http://www.youshouts.com/index.php
Any disruption is reason enough...
for the oil companies to make an extra billion or so.
If it takes out refineries, I could see it but don't we import most of our oil?
I may not know the truth, but I know when I'm being lied to...
I may not know the truth, but I know when I'm being lied to...