Monday, June 13, 2022

Cracked Up

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.



Anonymous said...

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.

Anonymous said...

Atlas is Shrugging, thanks to the green energy asshats.

Anonymous said...

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.

Anonymous said...

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?

Anonymous said...

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.

Anonymous said...

And you wonder why they call it "Crack Spread".

Anonymous said...

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.

Anonymous said...

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--

Anonymous said...

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.

Anonymous said...

But no mean tweets!

Anonymous said...

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.

Anonymous said...

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.

burton39110 said...

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.

Anonymous said...

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.

Anonymous said...

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.

Anonymous said...

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.

County Cletus said...

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.

Krusatyr said...

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".

Anonymous said...

And I see the same shit bags going right back in office.

Anonymous said...

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".

Anonymous said...

@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?

Anonymous said...

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.

Anonymous said...

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.

Anonymous said...

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.

Anonymous said...

@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.

Anonymous said...

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.

Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel


Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).

Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS