How exactly will blding new US refineries to make more gasoline reduce USdemand for foreign crudeoil imports?

Question

Presidential Candidate Rudolph Juliani just told David Letterman that he thinks we need to build new refineries to make more gasoline to meet increasing consumer demand and he seriously believes it is one way to will help lower the high price of gasoline or , at least keep it from rising further.
TWH 05212007-3

PLs consider this observation: Allowing for some expansion of gasoline-making capacity at existing US refineries, our product imports have had to increase over the last 30 or so years to cover increases in product demand and shortfalls during refinery turnarounds or natural disasters or refinery accidents. And just where have the imports to cover the gap between US refining capacity/performance and US product imports come from?

Osto you made valid points about US refining capacity buy you neglected to put the story in the context of OPEC, a cartel that does its best to regulate crude oil production and exports by a quota system that helps keep the prices of crude and finished productsas high as possible w/o encouraging the development of alternative energy sources backing out the need for liquid fossil fuels. TWH 05222007

I misspelled the candidate's name it's Guiliani not Juliani!

Supposed, according to Merc crude oil price is 65$/bbl(there are 42 gallons of crude per BBl of crude/ there are from 45 to 46 gals of petrolem products per BBl of crude after processing the crude though distillation and heavy fuel oil cracking processes).Yes there is a volumetric gain because heavy long HC chains when cracked into lighter HC chains occupy more space per unit mass of crude feedstock.) TWH 05262007-4

Mudmarine would it surprise you to know that the costs of wages and benefits of all the people working at the oilco's from exploration, production,refining, transportation of crude and products, and marketing are less than !(one) penny a gallon. Most of the price you pay at the pump goes to OPEC and the few people who run the oil production. The sheiks in Saudi Arabia and Kuwait, the generals in Nigeria and Gabon, and the mullahs of Iran wipe their asses with goldfoil and the quisiling oil executives at our oilco's--like the XOM CEO who recently retired with 500 million dollars-also do. You just don't listen, do y'all.TWH05272207-8

Brave and Golden is your knowledge from working inside the industry. Mine is before Enron and other oilco crooks became a total corruption.

Answer 1

Its all business, I feel like im being raped by the insurance companys as well, the goverment taxes...they are all unavoidable.

When getting raped with no chance of escape, or resistance....just enjoy the ride.

Answer 2

Probably because we haven't built a new refinery in the USA in almost 30 years, while our demand for refining has grown by leaps and bounds. Whenever a refinery goes down for maintenance or repair now, there is a real shortage of fuel. When that happens, prices go up. Building more refineries won't reduce our demand for foreign crude oil, but it will lower gas prices by reducing the delay between the importing of the oil, and the releasing of the refined gasoline for purchase by the public. And, it isn't 'oil companies' that have stopped building refineries just to drive up the cost of gasoline. It's the efforts by 'greens' to stop the building of refineries because they say they produce so much pollution. So blame the tree hugging left wingers for our lack of refining capacity in the USA. It isn't the oil companies' fault.

Answer 3

you have at a loss for words Refineries with Oil production (I.E. Wells) If we had the production we would not could desire to import the Crude oil to refine in the 1st place. And definite, there is way less prefer for any concentration of gas Stations as a results of gasoline performance of cutting-edge autos, whether with the starting to be inhabitants , there are extra autos consistent with-capita then there was, so the intake has nevertheless larger. and that i could somewhat get information from FOX than msnbc as a results of fact i like to income impartial suggestion.

Answer 4

The problem with that idea is that oil companies have taken their refineries off line precisely in order to dry up supply and drive up prices. Its supply and demand. The high cost of gasoline has more to do with the collapse of the value of the dollar (due to the war and the debt from cutting taxes for billionaires), and the futures market reflecting uncertainty about the future availability of petroleum because of Mr. Bush's war. Ending the war would do more to lower the price than anything else, and encouraging people NOT to waste gas with huge stupid gas guzzling status symbol SUV's.

Answer 5

it's a republican talking point to blame democrats for high prices of gas. the arguement is liberals block construction of refineries, therefore our gas is higher.

there are several flaws to this talking point. first thing is , they would have you believe that refining capacity has not increased since the 70's. not true, it is much easier to enlarge existing refineries than to build new ones. all of the refineries have been upgraded and enlarged over the years.

next thing is location of refineries. you cannot build a major refinery just anywhere. it has to be near a waterway that can recieve supertanker size ships. it has to have an extensive system of pipelines leading away from it. this involves digging massive trenches through peoples yards, across highways, across lots of peoples property and businesses. look at the coastline of the USA, all of it is developed. most of it is not deep enough to recieve supertankers. refineries are huge, they go for miles. there is just not a lot of places left suitable to build new ones. on the eastern seaboard, i cant think of any.

Answer 6

Well the biggest thing is we wont be dependent on the Hurricane prone gulf refineries thats the biggest thing they tend to get damaged when a hurricane goes through and it creates more competition which will lower prices everyone thinks opec is gouging us but its really our own refineries doing it as far as prices go.

Answer 7

We're having to import refined gas from over seas,transport it over here,add in all the anti-pollution chemicals and then transport it to where it's needed.
That adds to the cost at the pump.
Existing refineries can't be expanded any further,no space available.

Answer 8

Cartel in North America is more responsible for higher gas prices - inspite of lower rates of crude on global scenario.

Answer 9

It will allow us to use more of our own oil.

The real answer is nuclear power. Libs complain about it but then turn around and preach about global warming. They want their cake and to eat it too.

It's ironic too. We won't build our own refineries or drill for our own oil but we buy it from countries that don't care at all about the environment and tear it up infinitely more than we ever would.

Answer 10

Well than he is a moron too. There is no real reason why prices are up to record highs except that we are being gouged!