If the gas price hike reflects supply&demand why don't they increase the supply?

Question

When will the BIG oil companies build better more efficient refineries?
Every major media reports that the refineries are the problem.
With quarterly reports in the BILLIONS why aren't the oil companies satisfying their consumer?
When ANY other company has a increase in demand they expand and build new factories to produce for the additional product demand!

Crude doesn't seem to be what's causing the problem as U.S. scientists say they U.S. has vast amounts of untapped crude pools!!

I think it's time to quit lying to the U.S. citizens and tap our own supply of oil and bring some checks and balances to the American people!!

We've paid for long enough!

Answer 1

We could both drill and refine if the PC environmentalist who associate with the left would let us. The problem today is although there is plenty of oil...there are not enough refineries to produce fuel. Thus causing a bottleneck so to speak. That is why there is a difference in the price of crude, and what we are paying at the pump.

Answer 2

There is plenty of supply, the problem is there are not enough refineries. The US is broke up into five areas, environmentalist have stringent guidelines for each area.. So what goes into refining the gas is a very complicated formula of does and don'ts. The refineries that were affected by Katrina are still not all up and running. The Democrats have blocked the building of new refineries and drilling in this country, until the oil companies can refine the amount of oil they need to, we will pay higher prices. So blaming "big oil" is not going to fix the problem.

Answer 3

After Katrina, there were some (very small) supply problems, but it was the "disaster" aspect of the event that gave Big Oil the opportunity they'd been looking for - the chance to see exactly how much the market could bear. Sure enough, in the quarters following Katrina, all of the oil companies posted record profits, with Exxon/Mobil posting the largest profit margins by any company in any time in history.

So now, with the threat of regulation from a Democratic Congress, they are making hay while the sun shines, and restricting supply, with claims of "refinery repairs", just in time for the heaviest driving season. And experience shows that Americans will complain, but ultimately they'll pay the price.

Answer 4

Obama can not lower gas prices. If for some reason the government and president find a way to lower gas prices it would not be by alot we are talking like 10 or 20 cents. the earths oil supply is running low and by the situation we are in right now expect the worst. Gas will keep raising until we get cut off or bombed. America is hated by countaries who could destroy us any day. (china and russia) live it up while you can something bad is going to happen.

Answer 5

Well despite their large numbers of revenue congress actually makes more money off of big oil then the actual company does. They can't drill for oil anywhere in the US because they would be hurting the environment and environmentalists would go ballistic. Also despite what you think gasoline is still much cheaper than it is in most places in the world. There is also a additional cost that it takes to increase the octane rating to an allowable rating. Also a refinery costs around the billions. Oil companies are also the scapegoat of the majority of the left in this country because their uniformed base believes everything their lying politicians say.

Answer 6

Because US environmental laws have made it impossible for oil companies to build refineries in the US. Because all of them are over 30 years old, things break and they only run at 80% capacity. Relaxing laws so oil companies could build refineries would go a long way to increasing the supply of gasoline in this country.

Answer 7

There are vast amounts of untapped crude pools but those are heavier/sour grades for which we lack significant refining capacity in the US.

We can't expand refining capacity or drilling due to environmental regs.

A policy decision was made to err on the side of cleaner air and water.

You can agree or disagree with the decision but that was the decision.

Additionally the transportation and storage infrastructure stinks - there's really no good justification environmental or otherwise for that.

Answer 8

Part of the problem is that politicians don't want them (Oil Companies) to build anymore refineries, they have actually greatly decreased an oil companies ability to build new refineries and thus provide more oil. Talk to your representative.

Answer 9

It takes a considerable amount of investment and time to contruct, finance, and run a refinery. Often taking several years to construct. Not to mention the importance of location for transportation access.

Business has a check and a balance on them, its called the consumer. Don't like the deal don't take it.

This notion that you have a right to cheap gas is ridiculous.

Answer 10

The United States did not attack Iraq to better disperse Iraqi oil

but rather to control and keep the Iraqi oil off the market (for the most part)

thus creating false shortages

price fixing

and all of the friends of the Bush Crime Family laugh their heads off counting billions in blood spattered profits