do we have refineries that can refine Alaskan crude?

Question

i've heard that if we could refine Alaskan crude into gas that the price would be under $2 per gal. if that's the case why are we paying over $3 and climbing!

bostonianinmo i've been told that we sell the alaskan crude to countrys that can refine this extra heavy crude and that our countrys refineries are unable to proccess this crude because of how heavy it is?

i think there is also a greed factor in the price of gas per gallon. i live in an area that is heavily trafficed by tourists during the summer, espescialy on the weekends. all the BP stations and convineint store owners start to drool on thursday and jack the price up .10 cents a gallon then drop it back down monday or tuesday. gougeing is supposed to be against the law but it is unenforced. the only time i ever saw them called on it and fined was after 9/11.

Answer 1

The only problem with that is there hasn't been any new refineries built in the U.S. in decades.

Answer 2

Of course there are refineries that refine Alaskan crude! What do you think that we do with it? Pump it through the Alaskan pipeline, load it onto tankers at Valdiz and just let the tankers wander the oceans aimlessly forever?

Actually, North America (between the US and Canada) has the largest reserves of crude in the world -- more than all other nations combined -- in the form of shale oil. This is trapped in rock formations and is difficult and expensive to extract. Until recently this oil has not been economically accessible. With crude prices around $70.00 per barrel, that changes things entirely.

Even at $3.00 per gallon, gasoline is still cheaper than 1981 prices when inflation is taken into account. We will not likely see a return to sub $2.00 prices; the cost of extracting crude along with relatively limited refining capacity will keep prices closer to what they should be after adjusting for inflation.

This isn't necessarily a bad thing, however, as it's forcing people to consider their wasteful habits when choosing cars and how they will be used. This forces conservation without direct government intervention. It allows the markets to decide how to economize while at the same time allows those who want to over consume and can afford to do so the right to be wasteful.

Answer 3

Yes, we can refine it. But you forget there are many people opposed to drilling in Alaska since it would supposedly destroy the wild life and environment.

Besides, having more domestic oil wouldn't really drop the price that much, it would just lower or dependance on Middle Eastern oil (which is reason enough imo). The world economy sets the price of oil, even if it comes from our back yard. We may catch a break in shipping costs, but not much. With countries like China becoming more and more industrialized, the demand is just to high to lower the price. Just like any business, the price is set at what countries are willing to pay.

Answer 4

The reason gas is $3+ is because we import too much from the Arab nations.

We haven't decided to spoil Alaska yet by pumping the quantities we need. The reserves are there - underneath Alaska - we just aren't using them yet.

Maybe its better to conserve some (Alaskan crude) for the future, when the Arabs stop selling crude to us alltogether!