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This country does not just succeed when just a few are doing well at the top," Obama said, according to a rush transcript of the remarks. "It succeeds when the middle class gets bigger. Our economy does not grow from the top-down, it grows from the middle-out.
Originally posted by campanionator
And you don't think that the industry can strategically shut down refineries to squeeze supply and
create more profit???
This is where you are erroneously assigning a benevolent motive to oil companies.
Why?
What makes you think they want lower prices??? Did you ever want to make less money?
Exploration has been limited, which drives up the potential future cost of any commodity.
No it has not, in five years the amount of land that has been opened to oil leases has increased 25 million
hectares in the U.S territories alone.
At the proposed Canadian pipline, prices dipped because of anticipation of increased supply, when it was killed (on our end) by the administration, prices went up becuase that increase of supply was taken away. It is very expensive to have many formulations of gasoline, especially with refineries going off line. The lefties in California mandate many of these formulations for "environmental" reasons. Guess what? Gas in California is shooting up to 6 bucks a gallon.
It is the industry that is taking the refineries offline, it is a business decision to make more money,
with less work. It is working too, yet you can't except that -
Lets see if you can understand this: the cost of corn and wheat have gone up this year. Must be those dirty farmers, by your logic, price fixing and gouging. Nevermind that there was a drought that reduced supply.
Did the farmers DECIDE to stop watering their corn, just like the industry decided to slash their
refinery capabilities?
Gas is up because of decisions made by our elected representatives. That, sir, is the facts behind the matter regardless how much people hate "corporations."
No sir, prices are up 300% in a decade because the people who profit from the industry want to
make more money.
Please tell me, PLEASE,
What makes you think oil executives want to make less money for more output?
Have you seen any evidence that profits have increased by 300%? No, of course not because there is none.
What makes you think that costs to produce oil have increased 300%?
Do you realize that a business can convert income into assets to make profits appear low?
Or they can convert income into holdings shares that make profit appear low, even though they
have essentially converted massive amounts of profit into "expense"
And please answer the question I underlined
edit on 6-10-2012 by campanionator because: (no reason given)edit on 6-10-2012 by campanionator because: (no reason given)
Originally posted by Kali74
reply to post by NavyDoc
What over regulation? What refineries closing? The pipeline as in Keystone? The one that Obama wants to build but can't because it goes through Sovereign Tribal lands and the Native Americans said no? That one? Next anything but greed excuse please.
"Domestic infrastructure remains extremely constrained and there is not enough time for that to be resolved by summer,"
Originally posted by beezzer
First off, I must apologise for all my evil stupidity. But I have quotas I must fill.
And WTH? QE 1,2,3? They all suck! TARP was Bush's final nail as well! It all was a failed attempt to manipulate fiscal appearances by creating inflation and giving money to the banks! And that failed as well!
Any time government trys to influence policy with OUR money, WE end up paying for it!
To recap the problem, two of the nine East Coast refineries with a capacity of 363,000 barrels a day (b/d) have recently been closed down. Sunoco which owns a large Philadelphia area refinery (with a capacity of 335,000 b/d) is seeking a buyer and says it will close the refinery in July unless one can be found. These three refineries comprised 50 percent of the East Coast refining capacity as of last summer. Interestingly, the Sunoco's Philadelphia is the oldest continuously operating refinery in the world having been established in the 1860s. The company says the price of imported crude which costs refiners roughly the going rate in London, plus about $2 a barrel for shipping, simply makes refining along the East Coast unprofitable.
Even with the relaxation of the Jones Act and the environmental regulations, there seems to be a potential for problems in the near term.
Originally posted by Kali74
reply to post by NavyDoc
Seems to me those refineries shut down because the owners want to sell because it's not quite profitable enough to refine oil on the East Coast, not because of any government decree. In fact per your linked article the governments intervention has been asked for in order to keep them open.
To recap the problem, two of the nine East Coast refineries with a capacity of 363,000 barrels a day (b/d) have recently been closed down. Sunoco which owns a large Philadelphia area refinery (with a capacity of 335,000 b/d) is seeking a buyer and says it will close the refinery in July unless one can be found. These three refineries comprised 50 percent of the East Coast refining capacity as of last summer. Interestingly, the Sunoco's Philadelphia is the oldest continuously operating refinery in the world having been established in the 1860s. The company says the price of imported crude which costs refiners roughly the going rate in London, plus about $2 a barrel for shipping, simply makes refining along the East Coast unprofitable.
Also per your linked article.
Even with the relaxation of the Jones Act and the environmental regulations, there seems to be a potential for problems in the near term.