A bottleneck is taking place at American oil refineries, thus putting pressure on already soaring prices at the pump. The U.S. Energy Information Administration stated in a June 10 press release:
In our June 2022 Short-Term Energy Outlook (STEO), we forecast that U.S. refinery utilization will be relatively high this summer in response to strong wholesale prices for petroleum products, such as diesel and gasoline, which have increased more than the price of the crude oil used to make them.
The price difference between the price of crude oil and the wholesale price of a refined petroleum product reflects the value of refining crude oil. This difference, known as the crack spread, can indicate refining margins and profitability. Crack spreads for both diesel and gasoline increased in the first several months of 2022.
Gasoline and diesel prices and crack spreads are well above historical averages in response to several factors including:
- Low inventories for both petroleum products in the United States and globally
- Fuel demand increases to near pre-pandemic levels
- Relatively low refinery production of both fuels compared with pre-pandemic levels
- Reduced petroleum product exports from Russia
In response to these high prices, we expect that refinery utilization will reach a monthly average level of 96% twice this summer, near the upper limits of what refiners can consistently maintain. We expect refinery utilization to average 96% in June, 94% in July, and 96% in August.
We estimate U.S. refinery inputs will average 16.7 million b/d during the second and third quarters of 2022. This average is lower than the 2019 refinery inputs average of 17.3 million b/d despite high utilization rates because of reductions in refinery capacity since early 2020. U.S. refinery capacity has fallen by almost 1.0 million b/d since early 2020 because several refineries were closed or converted.
Pay attention to the space between the gas and diesel lines and the crude line. That space is the crack spread and it shows how the refining bottleneck is biting consumers in the ass.
There are only 129 refineries in America after six closed down over the last few years. A big one in Houston is scheduled to go off-line next year as well, removing 263,000 barrels a day from the market. As refining capacity shrinks, how will Americans fare?
Note: It gets even better.
26 comments:
It’s no different than all the food processing factories shut down/burned down and the power plants shut down. It is all by design. Part of Net Zero 2050 and The Great Reset.
And Kim Wade had a caller today who made the point that you can’t be safe while charging an EV in the hood.
I am glad I have been prepared for this for years.
Atlas is Shrugging, thanks to the green energy asshats.
Let me answer that question at the end. Fuel costs impact just about everything. By the end of next year Americans will be moving from being annoyed by higher prices to full-on panic mode. When Americans see their retirement funds being sucked up by long-term stock market declines, prices going from high to completely unaffordable, and supply issues going from shortages to famine-like conditions, I’d say most people won’t fare well at all.
It is all part of the problems with letting the media choose our president and having a fake president. Joe is not smart enough to know he is being used by his handler. He is telling Joe to do what he really wanted to do when he was president but knew he couldn't.
The cost of gas is being blamed on Putin. Part of that is the truth. If we would have had a president we wouldn't see Putin invading another country and we would not have started importing oil from Russia.
It will get worse before it gets better. We still have nearly three more years of Joe to survive. Just think how bad things have become in just a year. Do you think we can survive three more of the same?
@4:57
But the Globalists will have a solution for us. All we have to do is submit to the new rules of Carbon Neutrality.
Bend our frail, starving bodies prostrate before them and eat the plate-full of squirming bugs.
And you wonder why they call it "Crack Spread".
I've personally heard many radical progressives in a few of
"The Fondren" establishments raise hell about gas prices.
I find their anger amusing.
(This is what they voted for ... thus they should deal with it).
But I really don't think they know how.
Americans had better get their head out of their butts-sooner rather than Later. We know Ole Joe doesn't have a clue where he is nor what's going on. His handlers do, and we're at that breaking point. The Boston Tea Party doesn't have anything we're not Living Right Now. Just say when--
Building a refinery is a regulatory nightmare akin to building a nuclear power plant: the truly massive long term-capital investment and number of lawyers required are mostly unsurmountable.
Aging, outdated facilities are eventually closed, one by one, and not replaced. After decades of America-last policy, many of those still existing are built to refine sour crude from the mid-east... not our light, sweet American crude. In fact, the biggest refinery in the US is owned by... wait for it... the Saudis.
This is all by design. It's a war of attrition.
I loathe elitists but you have to give them credit for playing and winning the long game, on so many different fronts. Cultural, economic, and global.
But no mean tweets!
@8:28
The timing isn’t right to raise gas prices. The government has to finish the EV infrastructure before the forced change over. If the public isn’t ready for the changeover then government needs to heavily subsidize just like with the digital TV changeover.
Putin didn't cause the gas crisis. We did. Putin wants to sell gas and oil on the open market which increases supply and lowers the price. Biden and the other world leaders decided not to buy his gas and oil. We do business with the Saudis and the Chinese, both world class human rights abusers. Biden is also begging Venezuela for help. As usual, the powers that be pick the dictators they want to do business with while the rest of us bend over and take it. Open up the Keystone Pipeline, make the oil exploration permitting process seemless, build more refiners, buy Putins oil and gas. Problem solved.
The United States does not have a long term energy policy and it changes from administration to administration. Without a long term plan no right minded company will make long term infrastructure investments.
There should be a bill proposed so that when the famine begins, all Biden voters/Democrats are required to go to the back of the bread line.
Poor ole Joe is so Dementia'd, he can't remember he signed executive orders shutting down Keystone, canceled offshore & land based permits, then his dumbass gets on TV and says there are 90,000 open permits for drilling, but no one is drilling. DUH!!!!
You got to love Dim-O-Krat mental deficiency leadership, Jackson being the Poster Child. Sorry Fondren crowd, didn't mean to put so much butt hurt on you so early....just put a little padding on that "green" bike seat as you peddle to work.
Electric cars are clearly the future so it doesn’t make a lot of sense for oil companies to build new refineries when they know demand will plummet. I’m the meantime, they are going to squeeze the public out of every cent of profit they can get away with before the business dries up.
And the great and mega king won’t be able to fix it. All of you dummies have been had. Been screaming it from the mountain tops for years since the early 90s this long game is about to be over.
9:22
Bidenflation arose from Joey's war (from his 1st day in office) on fossil fuels, which energy source is three times more efficient than the hippie energy Biden's crew champions. Wind and Solar and EVs are filthy leftist scams that use third world slave labor and pollute the earth with massive strip mines, only to depend on fossil fuels for both the mysterious "plug-in" battery charging electrical generation and for grid backup.
Biden is a devoted, inveterate liar, in addition to considering himself a talented grifter, which he is not. He is a stupid idiot, albeit greedy for kickback graft from Russia, China, and his son and brother's influence peddling abroad.
Joey, a destructive enemy of America, is not some helpless puppet, even if he does get a puppy like orgasm from believing Obama's guidance will make him huge in History, which it will, though not for the reason he thinks, if you can call his limited cognition "thinking".
And I see the same shit bags going right back in office.
All the plans that are being made to switch the world's power, from oil consumption to electrical power, may be a fool's folly.
These decisions are being made by people that don't understand the struggles of 90% of the population. Nor, do they care how much those struggles will be intensified by the forced change of their plans.
Their carefully crafted plans, in their minds, are foolproof. They think they are insulated from any harm, their plans will cause. With the truth being with one properly placed coronal mass ejection we would all be setback to the Stone Age.
What is the old adage, "The best-laid plans of mice and men often go awry".
@11:19 - you sure sound like a well-reasoned and rational human being. Let me ask you, do you think your comment displays better “thinking” than Joe Biden is capable of?
I don’t know why anyone is surprised that this shit show is going over the cliff and dragging the American public with it! Biden said he would kill oil because it was dirty. He couldn’t give a rats ass that it could lead to famine or start a civil war. Joe thinks he’s above all the fray. Biden’s is so good a lying to the country he believes his own crap, he’s been doing it for decades.If democrats get their way it’s gonna get a lot worse before it gets better. They can do no wrong in their eyes. So what if a few million die from starvation because of their incompetence their saving the planet.
It’s a shame more Republicans don’t care about the long term viability of our planet. They only think of themselves and couldn’t care less about whoever comes after them.
What gives people the idea this planet needs saving? No one knows the number of extinction level events this world has been through, to date. Yet, it stills sustains life.
Speaking of extinction level events, we are near the due date for one, now.
@1:11 - decent people want future generations to have a place to live. Why stick your head in the sand when we know there is a problem and know how to fix it? Ignorance is not always bliss.
If, you think, removing Co2 is the answer to saving the planet, you must be one happy individual. Do you, and the rest of the idiots, think removing one of the nutrients that plants thrive on is going to make the planet greener? You people can't be taken serious.
Nature requires balance. Everything the suicide squad is doing, that would be you and the other idiots panicking over an imaginary problem, will move the planet towards a deficit of Co2, the very thing that plants consume to give off oxygen.
If your plans are followed, when, not if, the planet becomes out of balance for a lack of Co2, how do you, and the rest of the idiots, plan to bring the planet back to balance. This imbalance that is intentionally being created will not be undone by mankind.
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