Who is really to blame

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Rack

Legendary Cowboy
Oct 13, 2004
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#1
For the oil prices? No doubt in my mind that the price of oil is the driver of our inflation and the main reason we continue in that cycle. Also no doubt in my mind that it's the biggest issue for the average American today. It's causing the fed to increase rates and the market to soon "crash" even further. I thought I would ask here as several members of that industry post on this board. Thanks in advance for your answers.
 
Sep 3, 2010
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#2
https://seekingalpha.com/news/38457...-ever-built-again-in-the-us-chevron-ceo-warns

"We haven't had a refinery built in the United States since the 1970s. My personal view is there will never be another new refinery built in the United States," Wirth said in an interview with Bloomberg.
"You're looking at committing capital 10 years out, that will need decades to offer a return for shareholders, in a policy environment where governments around the world are saying we don't want these products," Wirth said.
"At every level of the system, the policy of our government is to reduce demand, and so it's very hard in a business where investments have a payout period of a decade or more," according to Wirth. "And the stated policy of the government for a long time has been to reduce demand for your products."
 

Rack

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#3
https://seekingalpha.com/news/38457...-ever-built-again-in-the-us-chevron-ceo-warns

"We haven't had a refinery built in the United States since the 1970s. My personal view is there will never be another new refinery built in the United States," Wirth said in an interview with Bloomberg.
"You're looking at committing capital 10 years out, that will need decades to offer a return for shareholders, in a policy environment where governments around the world are saying we don't want these products," Wirth said.
"At every level of the system, the policy of our government is to reduce demand, and so it's very hard in a business where investments have a payout period of a decade or more," according to Wirth. "And the stated policy of the government for a long time has been to reduce demand for your products."
A friend of mine who works for a pipeline company actually built a refinery for oil products four years ago in Corpus Christi. Just letting you know that’s not true. Maybe he’s just talking g about chevron.
 
Sep 3, 2010
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#4
A friend of mine who works for a pipeline company actually built a refinery for oil products four years ago in Corpus Christi. Just letting you know that’s not true. Maybe he’s just talking g about chevron.
How big? I would assume the CEO of Chevron knows what he's talking about?
 

Binman4OSU

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#5
A friend of mine who works for a pipeline company actually built a refinery for oil products four years ago in Corpus Christi. Just letting you know that’s not true. Maybe he’s just talking g about chevron.
The first one built since 1976. Up until this refinery went live no new facility had been built for 40+ years...existing facilities had been expanded and upgraded but not new ones until this and it only added 35K per day

The newest refinery in the United States is the Targa Resources Corporation's 35,000 barrels per calendar day (b/cd) condensate splitter in Channelview, Texas, which began operating in 2019.
 

Binman4OSU

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#6
Meanwhile. New Mexico, Wyoming, California and North Dakota ALL shut down EXISTING refineries in 2021citing Pandemic market conditions and Lack of Gas Demand.

From 2020 until 2021 we REDUCED American Refining capabilities by 900,000 BARRELLS PER DAY.

You reduce the Supply and prices will skyrocket when Demand returns.

"This is the third refinery on the Gulf Coast that is being shut in the last couple of years," Lipow told Fox 26.


American refinery capacity has been on the decline in recent years, according to Fuels Market News latest Refinery Capacity Report. The report found that operable atmospheric crude oil distillation capacity in the U.S. fell from 19 million barrels per calendar day at the start of 2020 to 18.1 million at the start of 2021. It marked the first decrease in refinery capacity since 2017, the report noted.

Much of that dip in output can be blamed on refinery closures such as the one in Houston, with the report noting that five facilities shuttered during 2021, including the Shell refinery in Convent, Louisiana. Other states that saw a refinery closure include New Mexico, California, North Dakota, and Wyoming.
 

CowboyOrangeFan

Mmmm, yeah.
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Jun 9, 2006
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#7
Gas prices are up worldwide. So is inflation. This is a worldwide issue. So, even though refinery capacity in the US is part of the equation, it isn't the cause.
 
Nov 6, 2010
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#8
This conversation reminds me of my industry, printing, which of course is paper dependent. The big paper companies know paper is going away, so they aren't willing to put any capital into new mills or equipment, or if they do, it is for the shipping industry (corrugated and dunnage) rather than fine paper. Even if they have a piece of equipment go down, they don't even want to repair it, they are just taking that supply off the market, regardless of demand. As a result, price increases every month and lead times for finished product longer than anything I've ever seen. I know gasoline has a longer runway than paper, but still a similar issue with the suppliers anticipating future demand rather than meeting current demand.

Having said all that, I thought I heard on MSNBC this morning that Exxon was building a new refinery right now.
 

Rack

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#10
Gas prices are up worldwide. So is inflation. This is a worldwide issue. So, even though refinery capacity in the US is part of the equation, it isn't the cause.
Not all worldwide prices are “up” nearly as much as ours. Some areas are far far worse than ours. Google gas prices per gallon By nation and you will see some areas in the third world at are producer nations are far cheaper than the US.
Over 100 nations currently have lower inflation rates than the USA with some being major nations like japan at 2.1% amoung others and not just the manulipulator china who is also below 2%…this is a western problem and even that isn’t completely true…it’s like someone or something is trying to drag the US down….maybe China? Russia is just a distraction.
 
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Rack

Legendary Cowboy
Oct 13, 2004
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#11
This conversation reminds me of my industry, printing, which of course is paper dependent. The big paper companies know paper is going away, so they aren't willing to put any capital into new mills or equipment, or if they do, it is for the shipping industry (corrugated and dunnage) rather than fine paper. Even if they have a piece of equipment go down, they don't even want to repair it, they are just taking that supply off the market, regardless of demand. As a result, price increases every month and lead times for finished product longer than anything I've ever seen. I know gasoline has a longer runway than paper, but still a similar issue with the suppliers anticipating future demand rather than meeting current demand.

Having said all that, I thought I heard on MSNBC this morning that Exxon was building a new refinery right now.
We have to have gas to make electricity in the amounts that will be needed. The other meathod are far less effective until we go nuclear. Bottom line, I think this could be fixed but the blame game isn’t the way to do it. Lol, realizing my own irony in the thread title…
 
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StillwaterTownie

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Jun 18, 2010
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#12
If the number of earthquakes can be used as a gauge, then oil companies sure aren't drilling in Oklahoma. The number of earthquakes currently happening is near zero. How much longer will oil prices have to stay above $100 to encourage drilling? Maybe the state of Oklahoma needs to provide some enticement. If banks aren't lending money for drilling, then that is a problem. Surely, some people blame the situation on Biden.
 

Rack

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Oct 13, 2004
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#13
Once again travel is open, Covid is declining, the only things holding us back are monitory policy and oil and gas production. Both fixable internally. Let’s fix these things!
 

Rack

Legendary Cowboy
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#14
If the number of earthquakes can be used as a gauge, then oil companies sure aren't drilling in Oklahoma. The number of earthquakes currently happening is near zero. How much longer will oil prices have to stay above $100 to encourage drilling? Maybe the state of Oklahoma needs to provide some enticement. If banks aren't lending money for drilling, then that is a problem. Surely, some people blame the situation on Biden.
The over 100% waste water injection that was being improperly put back into too small wells by a few rogue companies was stopped by the the corp commission and the epa several years ago…the reason they stopped is that other companies don’t want the rouge companies giving them a ton of liability by proxy.
 
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Cimarron

It's not dying I'm talking about, it's living.
Jun 28, 2007
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#16
https://seekingalpha.com/news/38457...-ever-built-again-in-the-us-chevron-ceo-warns

"We haven't had a refinery built in the United States since the 1970s. My personal view is there will never be another new refinery built in the United States," Wirth said in an interview with Bloomberg.
"You're looking at committing capital 10 years out, that will need decades to offer a return for shareholders, in a policy environment where governments around the world are saying we don't want these products," Wirth said.
"At every level of the system, the policy of our government is to reduce demand, and so it's very hard in a business where investments have a payout period of a decade or more," according to Wirth. "And the stated policy of the government for a long time has been to reduce demand for your products."
1655329541603.png



https://www.eia.gov/tools/faqs/faq.php?id=29&t=6
 
Dec 18, 2019
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Central Oklahoma
#17
Don’t worry Biden sent a letter to the oil companies demanding they increase production. Is high gas because of Putin or oil company profits? It’s hard to keep up these days. This is all coming from a guy who promised on the campaign trail he would end all fossil fuel production. It’s funny how fossil fuels aren’t that bad now when you’re in deep political trouble.