…in the morning…or anytime of the day!
I will be the first to admit, I know little about oil, gas, refineries and such, but as we fill up our cars of late at the gas station, it just lends ourselves to get a little educated. Why on earth did two hurricanes increase the prices sky high? Is it true that someone is profiting, and much, from these disasters?
Indeed, after watching the news this morning, Marc Ginsberg sort of made it clear that the refineries are guzzling the profits to the tune of a 50% increase, up 30% from before the crisis. After gasoline leaves refineries, the profit margin becomes narrower, even when prices are high. Many motorists direct their anger at gas station owners when the higher market prices for oil and gasoline show up at the pump. But the bulk of the increases at the pump typically is not making station owners rich, analysts said.
So, if you want to get upset, look to the refineries.
Another point was made though, A new oil refinery has not been built in the United States since 1976. During that time, our gasoline use has increased over 25 percent. The nation’s 149 existing refineries have been running at maximum capacity trying to meet record demand and, as a result, not only do we import oil, we actually have to import 10 percent of our daily gasoline from refineries overseas.
Just a few new refineries would alleviate the problem and help keep our gas prices lower and steadier.
But getting an oil refinery built is next to impossible, hence the 30-year construction drought. There will always be environmental activists who fight any new proposed refinery, regardless of where it might be located and how environmentally safe it is. And our environmental rules give them the upper hand.
Those existing refineries must love those environmental groups. They can guzzle the green thanks to the greens.
As for me, I have no answer. I can conserve. I sure drive a small enough car (which isn’t always practical in a snow covered Maryland). I drive less than ever.
These refineries…I think its worth a study, don’t you? Should we build more? Should government regulate their profits? What can be done?
Related Links
I don’t think price regulation is the answer, If my history is correct, that led
to very big problems in the 70′s. You cut their profits and they cut their production
leading to shortages. The true and tested solution in our Capitalist society is
competiton. Build more refineries and allow them to compete. If the supply is greater
than demand, prices will adjust accordingly. I can’t think of any exceptions to this
rule. Long term, I’ve always said that we need an alternative to OIL.