ChiGoose Posted June 22, 2022 Share Posted June 22, 2022 White House Fact Sheet Quote Right now, the federal government charges an 18 cent tax per gallon of gasoline and a 24 cent tax per gallon of diesel. Those taxes fund critical highways and public transportation, through the Highway Trust Fund. But in this unique moment, with gas prices near $5 a gallon on average across the country, President Biden is calling on Congress to suspend the gas tax for three months... Personally, I think this is a bad move. I do not think that most consumers will feel the impact of the gas tax holiday as the savings are more likely to be gobbled up by middlemen than passed down to customers. I get that the president of the US has very few options to affect gas prices in the short term, but I would rather see strong investments in medium to long term plans to alleviate our reliance on gas indefinitely than a short term band aid that's more likely to help the gas companies than consumers. 1 1 Link to comment Share on other sites More sharing options...
BillsFanNC Posted June 22, 2022 Share Posted June 22, 2022 Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 Just remove his executive orders that he did to stop all the things that were working before he took office & it would help but he couldn't do that because it wouldn't be part of what he is trying to accomplish . 2 1 Link to comment Share on other sites More sharing options...
ChiGoose Posted June 22, 2022 Author Share Posted June 22, 2022 19 minutes ago, T master said: Just remove his executive orders that he did to stop all the things that were working before he took office & it would help but he couldn't do that because it wouldn't be part of what he is trying to accomplish . Which executive orders should he revoke? Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 1 minute ago, ChiGoose said: Which executive orders should he revoke? All the ones that stopped domestic oil & natural gas drilling that would be a great start . 2 Link to comment Share on other sites More sharing options...
ChiGoose Posted June 22, 2022 Author Share Posted June 22, 2022 2 minutes ago, T master said: All the ones that stopped domestic oil & natural gas drilling that would be a great start . The timeline to bring new oil production online would not impact current prices. Additionally, there are thousands of permits already that are not being used. The government can issue as many permits as it wants, but if the oil companies don't drill, it won't do anything. 1 Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 (edited) 9 minutes ago, ChiGoose said: The timeline to bring new oil production online would not impact current prices. Additionally, there are thousands of permits already that are not being used. The government can issue as many permits as it wants, but if the oil companies don't drill, it won't do anything. So then it's all Putin & Covid that has made the price since Biden took over & has nothing to do with his executive orders to change what was which is the reason that it has OVER doubled the price in 2 yrs ? Edited June 22, 2022 by T master 1 Link to comment Share on other sites More sharing options...
ChiGoose Posted June 22, 2022 Author Share Posted June 22, 2022 1 minute ago, T master said: So then it's all Putin & Covid that has made the price since Biden took over & has nothing to do with his executive orders to change what was which is the reason that it has OVER doubled the price in 2 yrs ? No, it's not all Putin and COVID, though those do impact it. It's also not likely to be domestic oil production: (Source) There's no silver bullet for gas prices as the current prices are driven by multiple factors. It's just hard to argue that it's primarily driven by domestic production since that's still near historic highs. This is why I do not believe there is a short-term solution. The US President cannot sign an order that fixes supply chain issues, eliminates price gouging, immediately increases production, and ends the war in Ukraine. A gas tax holiday is like spitting on a fire. That's also why I think we should be focused on more medium to long term solutions. If we cannot fix this problem immediately, let's work to make sure it doesn't happen again. 1 1 Link to comment Share on other sites More sharing options...
BillsFanNC Posted June 22, 2022 Share Posted June 22, 2022 https://nypost.com/2022/03/09/why-biden-energy-policies-have-contributed-to-surging-oil-prices/ “It would have an immediate psychological impact on price,” Flynn said – noting a Keystone reboot announcement that would bring oil from the tar sands of Canada could knock off up to $10 from the price of oil just at the stroke of a pen, even if the pipeline were years away from production You’ve got diplomacy on Ukraine. You’ve got diplomacy with Iran. Now you’ve got diplomacy with Venezuela,” Kloza said. “You know, it might be advisable to have some diplomacy with oil and gas companies.” 1 1 Link to comment Share on other sites More sharing options...
wnyguy Posted June 22, 2022 Share Posted June 22, 2022 30 minutes ago, ChiGoose said: The timeline to bring new oil production online would not impact current prices. Additionally, there are thousands of permits already that are not being used. The government can issue as many permits as it wants, but if the oil companies don't drill, it won't do anything. I know you're smarter than this. 1 Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 8 minutes ago, ChiGoose said: No, it's not all Putin and COVID, though those do impact it. It's also not likely to be domestic oil production: (Source) There's no silver bullet for gas prices as the current prices are driven by multiple factors. It's just hard to argue that it's primarily driven by domestic production since that's still near historic highs. This is why I do not believe there is a short-term solution. The US President cannot sign an order that fixes supply chain issues, eliminates price gouging, immediately increases production, and ends the war in Ukraine. A gas tax holiday is like spitting on a fire. That's also why I think we should be focused on more medium to long term solutions. If we cannot fix this problem immediately, let's work to make sure it doesn't happen again. I posted this recently the implementation of alternatives will take a very long time as stated in this video by some one that knows much more about it that you or I . https://www.youtube.com/watch?v=wDOI-uLvTnY&t=2s And i have little if any faith given the decisions in the recent past of this POTUS to this point he hasn't made any good decisions to help the country or it 's people out ! Going back to OPEC, Saudi arabia , or Venezuela will in no way help because they will gouge the US for past actions & statements made against them . Link to comment Share on other sites More sharing options...
BillsFanNC Posted June 22, 2022 Share Posted June 22, 2022 1 minute ago, wnyguy said: I know you're smarter than this. Parroted directly from Psaki. 1 Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 5 minutes ago, DRsGhost said: https://nypost.com/2022/03/09/why-biden-energy-policies-have-contributed-to-surging-oil-prices/ “It would have an immediate psychological impact on price,” Flynn said – noting a Keystone reboot announcement that would bring oil from the tar sands of Canada could knock off up to $10 from the price of oil just at the stroke of a pen, even if the pipeline were years away from production You’ve got diplomacy on Ukraine. You’ve got diplomacy with Iran. Now you’ve got diplomacy with Venezuela,” Kloza said. “You know, it might be advisable to have some diplomacy with oil and gas companies.” What common sense in politics wouldn't that be a great thing if the "Career Politicians" might interject that in their thought process !! Link to comment Share on other sites More sharing options...
ChiGoose Posted June 22, 2022 Author Share Posted June 22, 2022 4 minutes ago, DRsGhost said: https://nypost.com/2022/03/09/why-biden-energy-policies-have-contributed-to-surging-oil-prices/ “It would have an immediate psychological impact on price,” Flynn said – noting a Keystone reboot announcement that would bring oil from the tar sands of Canada could knock off up to $10 from the price of oil just at the stroke of a pen, even if the pipeline were years away from production You’ve got diplomacy on Ukraine. You’ve got diplomacy with Iran. Now you’ve got diplomacy with Venezuela,” Kloza said. “You know, it might be advisable to have some diplomacy with oil and gas companies.” I'm sure it would have marginal impact on prices for something like that, but I'm not going to take the word of an oil industry exec arguing that the government should help his company as gospel. Just a quick glance ate oil prices versus gas prices shows that in July, 2018 the price of oil was about $165 per barrel and gas was $4.11. In May 2022, the price of oil was $115 and the price of gas was $4.55. So even with oil being $50 cheaper per barrel, gas is $0.44 more expensive than it was during that peak. So even if Biden gave a full throated endorsement of more drilling and domestic production, it may only move the needle a little in the short term. Sources: (Oil prices) (Gas prices) 1 Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 47 minutes ago, ChiGoose said: No, it's not all Putin and COVID, though those do impact it. It's also not likely to be domestic oil production: (Source) There's no silver bullet for gas prices as the current prices are driven by multiple factors. It's just hard to argue that it's primarily driven by domestic production since that's still near historic highs. This is why I do not believe there is a short-term solution. The US President cannot sign an order that fixes supply chain issues, eliminates price gouging, immediately increases production, and ends the war in Ukraine. A gas tax holiday is like spitting on a fire. That's also why I think we should be focused on more medium to long term solutions. If we cannot fix this problem immediately, let's work to make sure it doesn't happen again. https://needtoknow.news/2022/06/union-pacific-rail-to-cut-fuel-shipments-by-pilot-flying-j-truck-stops-and-gas-stations/ It is a supply chain thing but i feel it is becoming more man made than anything ... Link to comment Share on other sites More sharing options...
Demongyz Posted June 22, 2022 Share Posted June 22, 2022 22 minutes ago, T master said: https://needtoknow.news/2022/06/union-pacific-rail-to-cut-fuel-shipments-by-pilot-flying-j-truck-stops-and-gas-stations/ It is a supply chain thing but i feel it is becoming more man made than anything ... I figure Biden could use his powers to force UP to not F up the world, but what do I know? 1 Link to comment Share on other sites More sharing options...
Doc Posted June 22, 2022 Share Posted June 22, 2022 Of course he did. I'm just surprised it isn't for 5 months... Link to comment Share on other sites More sharing options...
Jauronimo Posted June 22, 2022 Share Posted June 22, 2022 2 hours ago, T master said: All the ones that stopped domestic oil & natural gas drilling that would be a great start . How much domestic production did he "stop"? Link to comment Share on other sites More sharing options...
ChiGoose Posted June 22, 2022 Author Share Posted June 22, 2022 24 minutes ago, Doc said: Of course he did. I'm just surprised it isn't for 5 months... Probably just to cover the summer, where there is more driving, and therefore more demand on gas. Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 10 minutes ago, Jauronimo said: How much domestic production did he "stop"? What ever the amount that his 53 or so (29 + in the very first day) executive orders he signed in the first 100 days in office which is the highest in history . I didn't actually read the orders so i don't know exactly which ones but if one would depend on the lame stream media to actually report about those particular actions we are being foolish & if one thinks that the price of fuel can over yes OVER double in the short time this man has been in office & he had absolutely nothing at all to do with it then they are a dam fool . It just really strikes me as very strange that this administrations & it's clean energy agenda with change to electric vehicles is coinciding with this fuel price hike coincidence i think not but you go ahead & believe that Putin, Covid & the other reasons they spew are it. I'll wait to see the BS uncovered like it was when Biden went on national TV & said & i quote "If you get the vaccine you cannot get or spread covid you are completely protected" which just gives me all the more reason to not believe this lying POS !! Then there is this stuff that helps their stance why all the sudden why now ?? https://needtoknow.news/2022/06/union-pacific-rail-to-cut-fuel-shipments-by-pilot-flying-j-truck-stops-and-gas-stations/ https://www.youtube.com/watch?v=wDOI-uLvTnY&t=2s But i know none of this will make any sense to those that believe Biden is doing a great job . 1 Link to comment Share on other sites More sharing options...
Jauronimo Posted June 22, 2022 Share Posted June 22, 2022 1 hour ago, wnyguy said: I know you're smarter than this. Break it down for him in terms of production and dollars at the pump. Link to comment Share on other sites More sharing options...
ChiGoose Posted June 22, 2022 Author Share Posted June 22, 2022 3 minutes ago, T master said: What ever the amount that his 53 or so (29 + in the very first day) executive orders he signed in the first 100 days in office which is the highest in history . I didn't actually read the orders so i don't know exactly which ones but if one would depend on the lame stream media to actually report about those particular actions we are being foolish & if one thinks that the price of fuel can over yes OVER double in the short time this man has been in office & he had absolutely nothing at all to do with it then they are a dam fool . It just really strikes me as very strange that this administrations & it's clean energy agenda with change to electric vehicles is coinciding with this fuel price hike coincidence i think not but you go ahead & believe that Putin, Covid & the other reasons they spew are it. I'll wait to see the BS uncovered like it was when Biden went on national TV & said & i quote "If you get the vaccine you cannot get or spread covid you are completely protected" which just gives me all the more reason to not believe this lying POS !! Then there is this stuff that helps their stance why all the sudden why now ?? https://needtoknow.news/2022/06/union-pacific-rail-to-cut-fuel-shipments-by-pilot-flying-j-truck-stops-and-gas-stations/ https://www.youtube.com/watch?v=wDOI-uLvTnY&t=2s But i know none of this will make any sense to those that believe Biden is doing a great job . I don't think Biden is doing a great job, but the argument that Biden has hampered US production of oil does not match the fact that our current domestic output is near historic highs. Like I've said, there are multiple reasons why the price has skyrocketed and none of them are easily solved in the short term. There isn't much the president can do to make a big impact on prices in the short term. Link to comment Share on other sites More sharing options...
All_Pro_Bills Posted June 22, 2022 Share Posted June 22, 2022 (edited) 25 minutes ago, ChiGoose said: I don't think Biden is doing a great job, but the argument that Biden has hampered US production of oil does not match the fact that our current domestic output is near historic highs. Like I've said, there are multiple reasons why the price has skyrocketed and none of them are easily solved in the short term. There isn't much the president can do to make a big impact on prices in the short term. I think the real bottleneck is refining capacity. Which has been falling. I suspect some of it might be a grade issue where most gulf coast refineries are configured for heavier crude grades and what might be available is lighter which is not producing as much diesel for example. But I haven't dug into the details. Given the negativity towards the industry from the President and his administration campaigning with vows to eliminate and cripple the industry. pressuring banks and investment funds to starve the industry of capital, and on day one cancelling Keystone (which if left alone would be operational today), I'd like to hear a compelling argument that might convince a refiner to spend 3 or 4 billion dollars to add capacity in the face of the we're going to eliminate oil and gas mantra. My major problem with Biden's operating style here is that nothing seems to be thought out ahead of time and there's little concern or intelligence being utilized to consider consequences of actions and policies. Like everything is a surprise and the effect is to blame but never the cause. So let's put sanctions on Russian oil exports and sales and financial transactions but not think about how that might impact supply and prices. Stupid or don't care. Pick one, both are bad. The other thing is I don't think there's a single member of his cabinet or inner circle of advisors that have any clue or understanding of how the private sector and businesses work. Edited June 22, 2022 by All_Pro_Bills Link to comment Share on other sites More sharing options...
T master Posted June 22, 2022 Share Posted June 22, 2022 24 minutes ago, ChiGoose said: I don't think Biden is doing a great job, but the argument that Biden has hampered US production of oil does not match the fact that our current domestic output is near historic highs. Like I've said, there are multiple reasons why the price has skyrocketed and none of them are easily solved in the short term. There isn't much the president can do to make a big impact on prices in the short term. One thing he could do is stop selling to other countries if we are producing as much as you say & could sell here & the companies would still be making money hand over fist . Link to comment Share on other sites More sharing options...
Orlando Tim Posted June 22, 2022 Share Posted June 22, 2022 Gas tax holiday is the worst way to help the situation because it will drop a gallon by about 20 cents but not deal with the underlying issues. It also is the one of the few taxes that is completely voluntary and necessary. To those of you claiming that Biden is not a large cause of the rise of gas then maybe speak with someone who works, or has ever worked, in the oil industry. Biden is intentionally making it difficult on them. 1 1 2 Link to comment Share on other sites More sharing options...
Big Blitz Posted June 22, 2022 Share Posted June 22, 2022 3 hours ago, ChiGoose said: The timeline to bring new oil production online would not impact current prices. Additionally, there are thousands of permits already that are not being used. The government can issue as many permits as it wants, but if the oil companies don't drill, it won't do anything. Long term Solution (not including sane energy policies): Never elect the people that shutdown the planet and scared you into submission because of Orange Man Bad - leading to massive inflation and more Fed interventions because we pumped 9 trillion dollars into the economy but enough were cool with it because hmmmmmm stimulus checks and "telework." Oh and ..... we're all in this together! This is going to be 10 plus years before you see anything close to normalcy. And I will preemptively shame the media and every low info moron that's going to blame DeSantis and his first 2 years in the White House as being responsible for not fixing fast enough the looming 15% unemployment and $8 national average for gas that's coming. Or that he's made it worse. Especially after it's current vacation during the Biden years - well, its resources have been completely diverted to January 6. 2 Link to comment Share on other sites More sharing options...
Buffarukus Posted June 22, 2022 Share Posted June 22, 2022 4 hours ago, ChiGoose said: The timeline to bring new oil production online would not impact current prices. Additionally, there are thousands of permits already that are not being used. The government can issue as many permits as it wants, but if the oil companies don't drill, it won't do anything. oil prices are based on futures. if you have a administration openly saying they are going to end fossil fuels and FUTURE pipelines ect then it be a good guess that supply will be dwindling in the FUTURE. less supply with zero infrastructure to actually change to anything else. LOW supply SAME DEMAND or higher. where do you think that sends prices in the looking to the FUTURE. at the same time if I'm a oil company, how much money am i going to invest in something I'm being activley told will be wiped out? lets pour billions into new drilling and processing for a president who is looking to destroy our industry? stupid tactics to begin with imo. hey fossil fuel im declaring war on you without a backup plan besides "be rich and switch everything to electric". im sure oil exects are gouging, makes the president look bad and makes people desperate to elect people that will let them have a free for all. 2 Link to comment Share on other sites More sharing options...
716er Posted June 22, 2022 Share Posted June 22, 2022 18 cents per gallon times average of say 16 gallons per week, times 12 weeks an extra $35 in each driver’s pocket Cmon The reality is relative to our global counterparts gas is still inexpensive in the US. 1 Link to comment Share on other sites More sharing options...
Orlando Tim Posted June 22, 2022 Share Posted June 22, 2022 1 hour ago, 716er said: 18 cents per gallon times average of say 16 gallons per week, times 12 weeks an extra $35 in each driver’s pocket Cmon The reality is relative to our global counterparts gas is still inexpensive in the US. Our gas is now more expensive than when I was in Europe in 2018. But good point, Biden is making America as bad as Europe. 1 Link to comment Share on other sites More sharing options...
Albwan Posted June 22, 2022 Share Posted June 22, 2022 alms for the poor! cmon man it's almost midterms gots to do something amirite? Link to comment Share on other sites More sharing options...
Precision Posted June 22, 2022 Share Posted June 22, 2022 Prices for refined products have increased relative to the price of crude because US refining capacity is down. When prices tanked during the pandemic many refineries closed. Current refined distillate output in the US is lower than in 2017. Prices are up because supply is down, way down. Factbox: Which U.S. refineries have shut since the global pandemic, and why? June 17 (Reuters) - Since the onset of the global pandemic, the United States has lost nearly 1 million barrels per day of oil refining capacity, with more set to be shuttered in the next few years. Given a business model where the Federal government is trying to destroy your business (fossil fuels), it's no surprise that no one is going to build a new refinery in the US. Refineries are large capital expenditures that take companies years to pay back. Only an idiot would build a new refinery knowing that it could be shutdown (due to the green transition) long before the cost of construction could be recouped. Personally, I think the issue with leases and the Biden administrations open disparagement of oil companies does impact crude prices. The refinery problem is a larger problem that I don't think anyone saw and is an issue I don't see this, or the next administration solving. 1 Link to comment Share on other sites More sharing options...
US Egg Posted June 22, 2022 Share Posted June 22, 2022 Average daily driver in U.S. drives 14,200 miles per year. (2017) Median U.S. vehicle m.p.g. 24 per., nearly 600 gal. needed to drive 14,200 miles (2017) Three month $0.18 reprieve on 150 gals at $5.00 per equals equals $9 a month, but, yes, people drive more in summer, so double it. …..thanks, for the two extra c&p pizzas this summer Joe. 1 1 Link to comment Share on other sites More sharing options...
ALF Posted June 22, 2022 Share Posted June 22, 2022 U.S. refiners to urge White House not to ban fuel exports -sources June 22, 2022 The United States is the world's biggest exporter of refined products, lately shipping a near-record of 6 million barrels per day of products including gasoline and diesel, according to federal data. Restricting exports could temporarily flood the U.S. market, lowering prices, but refiners could respond by reducing output. In 2015, The U.S. lifted a 40-year ban on crude oil exports that was put in place to help keep the country less dependent on the Middle East. In the last two years, the country has become a net exporter of crude oil and refined products, making it one of the most important players in global energy markets. “If refiners aren’t allowed to export, they’re just going to slow down production and cut the refinery utilization rate,” according to Bob Yawger, director of energy futures at Mizuho. Yawger said excess products would likely be sent into inventories, which are at multi-year lows. “Refiners would lose money on it and refiners are not a charity,” he added. https://www.reuters.com/business/energy/us-refiners-urge-white-house-not-ban-fuel-exports-sources-2022-06-22/ 1 Link to comment Share on other sites More sharing options...
Doc Posted June 23, 2022 Share Posted June 23, 2022 6 hours ago, All_Pro_Bills said: I think the real bottleneck is refining capacity. Which has been falling. I suspect some of it might be a grade issue where most gulf coast refineries are configured for heavier crude grades and what might be available is lighter which is not producing as much diesel for example. But I haven't dug into the details. Given the negativity towards the industry from the President and his administration campaigning with vows to eliminate and cripple the industry. pressuring banks and investment funds to starve the industry of capital, and on day one cancelling Keystone (which if left alone would be operational today), I'd like to hear a compelling argument that might convince a refiner to spend 3 or 4 billion dollars to add capacity in the face of the we're going to eliminate oil and gas mantra. My major problem with Biden's operating style here is that nothing seems to be thought out ahead of time and there's little concern or intelligence being utilized to consider consequences of actions and policies. Like everything is a surprise and the effect is to blame but never the cause. So let's put sanctions on Russian oil exports and sales and financial transactions but not think about how that might impact supply and prices. Stupid or don't care. Pick one, both are bad. The other thing is I don't think there's a single member of his cabinet or inner circle of advisors that have any clue or understanding of how the private sector and businesses work. Shocker! Link to comment Share on other sites More sharing options...
ALF Posted June 23, 2022 Share Posted June 23, 2022 (edited) US exports even more oil as domestic gasoline and diesel prices spike January-May crude exports at all-time high; refined products exports back to pre-COVID levels Greg Miller Follow on TwitterTuesday, May 31, 2022 U.S. energy exports are booming at the very time domestic gasoline and diesel prices are at or near their peaks. With America’s fuel prices expected to rise even further, the “resource nationalism” debate — should we be exporting commodities we need? — is heating up. European imports from the U.S. were 1.27 million b/d in May, “a record high, accounting for 40% of all imported U.S. barrels, with volumes [favoring] the Netherlands, Spain and Italy. This has come at the expense of barrels into India, Canada and South Korea.” U.S. clean products exports are still overwhelmingly headed to Latin America. According to Kpler data, Latin America accounted for 2.15 million b/d, or 87%, of all U.S. seaborne imports to any destination in May. In November 2021, long before the recent price surge, 11 senators asked President Joe Biden to “consider all tools available at your disposal to lower U.S. gasoline prices … [including] a ban on crude oil exports.” https://www.freightwaves.com/news/us-exports-even-more-oil-as-domestic-gasoline-diesel-prices-spike Oil From U.S. Strategic Reserve Heads for Europe Amid Global Supply Crunch April 18, 2022 https://www.bloomberg.com/news/articles/2022-04-18/texas-port-sends-strategic-u-s-oil-to-europe-amid-supply-crunch Edited June 23, 2022 by ALF Link to comment Share on other sites More sharing options...
Irv Posted June 23, 2022 Share Posted June 23, 2022 Prices were going through the roof long before Putin started his shenanigans. It was all Demented Joke Biden's fault. 1 Link to comment Share on other sites More sharing options...
SoCal Deek Posted June 23, 2022 Share Posted June 23, 2022 It’s a Biden Festivus miracle! Almost six months after he told Americans to expect some pain and sacrifice from Putin’s Price Hike (😂😂😂) he decides he too can actually help, and that his do nothing government can also endure some pain and sacrifice. What an utterly clueless Administration! 1 1 Link to comment Share on other sites More sharing options...
Jauronimo Posted June 23, 2022 Share Posted June 23, 2022 19 hours ago, Precision said: Prices for refined products have increased relative to the price of crude because US refining capacity is down. When prices tanked during the pandemic many refineries closed. Current refined distillate output in the US is lower than in 2017. Prices are up because supply is down, way down. Factbox: Which U.S. refineries have shut since the global pandemic, and why? June 17 (Reuters) - Since the onset of the global pandemic, the United States has lost nearly 1 million barrels per day of oil refining capacity, with more set to be shuttered in the next few years. Given a business model where the Federal government is trying to destroy your business (fossil fuels), it's no surprise that no one is going to build a new refinery in the US. Refineries are large capital expenditures that take companies years to pay back. Only an idiot would build a new refinery knowing that it could be shutdown (due to the green transition) long before the cost of construction could be recouped. Personally, I think the issue with leases and the Biden administrations open disparagement of oil companies does impact crude prices. The refinery problem is a larger problem that I don't think anyone saw and is an issue I don't see this, or the next administration solving. No refineries of notable capacity have been built in this country since the 1970s. 1977 to be precise. Theres a little more to the story than just the Biden admins anti-fossil fuel position. For all Biden's efforts to kill the oil and gas industry its doing remarkably well. Perhaps its more performative than substance. Link to comment Share on other sites More sharing options...
Jauronimo Posted June 23, 2022 Share Posted June 23, 2022 23 hours ago, All_Pro_Bills said: I think the real bottleneck is refining capacity. Which has been falling. I suspect some of it might be a grade issue where most gulf coast refineries are configured for heavier crude grades and what might be available is lighter which is not producing as much diesel for example. But I haven't dug into the details. Given the negativity towards the industry from the President and his administration campaigning with vows to eliminate and cripple the industry. pressuring banks and investment funds to starve the industry of capital, and on day one cancelling Keystone (which if left alone would be operational today), I'd like to hear a compelling argument that might convince a refiner to spend 3 or 4 billion dollars to add capacity in the face of the we're going to eliminate oil and gas mantra. My major problem with Biden's operating style here is that nothing seems to be thought out ahead of time and there's little concern or intelligence being utilized to consider consequences of actions and policies. Like everything is a surprise and the effect is to blame but never the cause. So let's put sanctions on Russian oil exports and sales and financial transactions but not think about how that might impact supply and prices. Stupid or don't care. Pick one, both are bad. The other thing is I don't think there's a single member of his cabinet or inner circle of advisors that have any clue or understanding of how the private sector and businesses work. You really think no one considered the consequences of a near global embargo on Russian oil exports? No one on his team had an inkling that banning exports from a top 5 oil and gas exporting nation might create massive shortages across Europe and increase prices globally? Link to comment Share on other sites More sharing options...
Big Blitz Posted June 23, 2022 Share Posted June 23, 2022 (edited) On 6/22/2022 at 3:20 PM, Big Blitz said: This is going to be 10 plus years before you see anything close to normalcy. And I will preemptively shame the media and every low info moron that's going to blame DeSantis and his first 2 years in the White House as being responsible for not fixing fast enough the looming 15% unemployment and $8 national average for gas that's coming. Or that he's made it worse. Especially after it's current vacation during the Biden years - well, its resources have been completely diverted to January 6. Hahahahahahahahaha they're getting you ready: Fed says banks could withstand 10% unemployment, 55% stock price drop in annual stress test The Federal Reserve Board on Thursday projected the potential for a rockier road ahead for banks than it did a year ago, but said the 33 financial institutions it reviewed passed its annual stress test of capital reserves. The Fed estimated $612 billion in potential losses for banks in its most severe economic scenario, and said even if this comes to pass, banks would still be healthy enough to provide loans to homes and businesses to keep the economy afloat. That’s a $50 billion more-severe loss projection than a year ago by the largest banks. “This year’s hypothetical scenario is tougher than the 2021 test, by design, and includes a severe global recession,” the Fed said in a statement. The Fed’s model included a 5.75% increase in unemployment to 10%, a 40% decline in commercial real estate prices and a 55% drop in stock prices. Fed says banks could withstand 10% unemployment, 55% stock price drop in annual stress test: https://on.mktw.net/3zZufj7 Edited June 23, 2022 by Big Blitz Link to comment Share on other sites More sharing options...
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