Need More Oil Refineries?

Paul M. Eldridge wrote:
> We're often told a lack of refining capacity in the United States is
> contributing to the high cost of gasoline in that country. If that
> were truly the case, one might rightfully ask why the U.S. exports 1.6
> million barrels of finished petroleum products each day. (*)
>
> Source:
> http://www.forbes.com/reuters/feeds/reuters/2008/07/03/2008-07-03T184028Z_01_N02435397_RTRIDST_0_USA-OIL-EXPORTS-ANALYSIS.html
>

That's a tough one, but I'll venture some wild-ass guesses:

* Because the people who own the petroleum products can get more for it by
selling it elsewhere?
* Possibly because we have a 12-month supply of axle grease?
* Oh, I know: Because current law does not allow selling asphalt with more
than 10% contamination by heavy metals such as Thallium?

On Fri, 4 Jul 2008 12:08:04 -0500, "HeyBub" <[email protected]>
wrote:

>Paul M. Eldridge wrote:
>> We're often told a lack of refining capacity in the United States is
>> contributing to the high cost of gasoline in that country. If that
>> were truly the case, one might rightfully ask why the U.S. exports 1.6
>> million barrels of finished petroleum products each day. (*)
>>
>> Source:
>> http://www.forbes.com/reuters/feeds/reuters/2008/07/03/2008-07-03T184028Z_01_N02435397_RTRIDST_0_USA-OIL-EXPORTS-ANALYSIS.html
>>
>
>That's a tough one, but I'll venture some wild-ass guesses:
>
>* Because the people who own the petroleum products can get more for it by
>selling it elsewhere?
>* Possibly because we have a 12-month supply of axle grease?
>* Oh, I know: Because current law does not allow selling asphalt with more
>than 10% contamination by heavy metals such as Thallium?

I pick door number one! What's my prize, Monty?

Cheers,
Paul

Paul M. Eldridge wrote:
...
> were truly the case, one might rightfully ask why the U.S. exports 1.6
> million barrels of finished petroleum products each day. ...

Read the article, it says why, you simply have to comprehend...

--

On Fri, 04 Jul 2008 12:45:59 -0500, dpb <[email protected]> wrote:

>Paul M. Eldridge wrote:
>...
>> were truly the case, one might rightfully ask why the U.S. exports 1.6
>> million barrels of finished petroleum products each day. ...
>
>Read the article, it says why, you simply have to comprehend...

What this article tells me is that there's no merit to such claims;
namely, that there's no shortage of refined product or refining
capacity and, consequently, no negative impact on retail price.

Cheers,
Paul

"Paul M. Eldridge" <[email protected]> wrote in message
news:akrs64duc83o3qdaevbubv0ngrjl91je9c@4ax.com...
| On Fri, 04 Jul 2008 12:45:59 -0500, dpb <[email protected]> wrote:
|
| >Paul M. Eldridge wrote:
| >...
| >> were truly the case, one might rightfully ask why the U.S. exports 1.6
| >> million barrels of finished petroleum products each day. ...
| >
| >Read the article, it says why, you simply have to comprehend...
|
| What this article tells me is that there's no merit to such claims;
| namely, that there's no shortage of refined product or refining
| capacity and, consequently, no negative impact on retail price.

What this tells me is that this has nothing to do with home repair!

On 7/4/2008 12:29 PM Calab spake thus:

> "Paul M. Eldridge" <[email protected]> wrote in message
> news:akrs64duc83o3qdaevbubv0ngrjl91je9c@4ax.com...
>
> | On Fri, 04 Jul 2008 12:45:59 -0500, dpb <[email protected]> wrote:
> |
> | >Paul M. Eldridge wrote:
> | >...
> | >> were truly the case, one might rightfully ask why the U.S. exports 1.6
> | >> million barrels of finished petroleum products each day. ...
> | >
> | >Read the article, it says why, you simply have to comprehend...
> |
> | What this article tells me is that there's no merit to such claims;
> | namely, that there's no shortage of refined product or refining
> | capacity and, consequently, no negative impact on retail price.
>
> What this tells me is that this has nothing to do with home repair!

Your complaint has been duly noted. You will be receiving a TS letter
from us shortly.


--
"Wikipedia ... it reminds me ... of dogs barking idiotically through
endless nights. It is so bad that a sort of grandeur creeps into it.
It drags itself out of the dark abyss of pish, and crawls insanely up
the topmost pinnacle of posh. It is rumble and bumble. It is flap and
doodle. It is balder and dash."

- With apologies to H. L. Mencken

Paul M. Eldridge <[email protected]> wrote:

> If that
>were truly the case, one might rightfully ask why the U.S. exports 1.6
>million barrels of finished petroleum products each day.

Gee, and if you read the article you'd find out why:

But many energy experts say oil and petroleum products are traded globally, and
it may make economic sense to export gasoline refined along the U.S. Gulf Coast
to Latin America and import European-refined gasoline to U.S. East Coast
markets.

and

John Felmy, the chief economist at the American Petroleum Institute, said a
portion of the oil products exported, especially diesel, was fuel that did not
meet U.S. clean air requirements and therefore could not be sold in America.
"You may have some that you're not able to use," he said.

"Robert Neville" <[email protected]> wrote in message
news:g4ltm802dn6@news3.newsguy.com...
>
> Paul M. Eldridge <[email protected]> wrote:
>
>> If that
>>were truly the case, one might rightfully ask why the U.S. exports 1.6
>>million barrels of finished petroleum products each day.
>
> Gee, and if you read the article you'd find out why:
>
> But many energy experts say oil and petroleum products are traded
> globally, and
> it may make economic sense to export gasoline refined along the U.S. Gulf
> Coast
> to Latin America and import European-refined gasoline to U.S. East Coast
> markets.
>
> and
>
> John Felmy, the chief economist at the American Petroleum Institute, said
> a
> portion of the oil products exported, especially diesel, was fuel that did
> not
> meet U.S. clean air requirements and therefore could not be sold in
> America.
> "You may have some that you're not able to use," he said.

I believe that Chevron has refineries in Texas that are jointly owned with
Hugo Chavez. If that's the case, I would expect a certain amount of finished
product to go back to where the crude originated

On Fri, 04 Jul 2008 13:28:44 -0600, Robert Neville <[email protected]>
wrote:

>
>Paul M. Eldridge <[email protected]> wrote:
>
>> If that
>>were truly the case, one might rightfully ask why the U.S. exports 1.6
>>million barrels of finished petroleum products each day.
>
>Gee, and if you read the article you'd find out why:
>
>But many energy experts say oil and petroleum products are traded globally, and
>it may make economic sense to export gasoline refined along the U.S. Gulf Coast
>to Latin America and import European-refined gasoline to U.S. East Coast
>markets.
>
>and
>
>John Felmy, the chief economist at the American Petroleum Institute, said a
>portion of the oil products exported, especially diesel, was fuel that did not
>meet U.S. clean air requirements and therefore could not be sold in America.
>"You may have some that you're not able to use," he said.

Correct. Finished products are bought and sold on the world market
and increasing domestic refining capacity would have little or no
material impact on retail price given that the marketplace is already
well served. If anything, adding more capacity would only drive many
of the smaller, independent players out of business.

Cheers,
Paul