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The Water Cooler
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Another Reason Not to live in CA. Gas hits record high.
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<blockquote data-quote="TwoForFlinching" data-source="post: 1929344" data-attributes="member: 24500"><p>The biggest reason our refinery is making hand over fist cash on gas is because they chose to produce less of it, not because of a shortage of crude. With new frac technologies, and a substantially higher supply in these united states than was ever estimated. We're making diesel as priority, because of the substantial profit margin, greater that gasolines and lighter products. I imagine all refineries, including those in an import/port state like California, have realized the profit margin on diesel is a best return on the initial crude investment, thus driving the price Of gasoline up. </p><p></p><p>No doubt refineries are having major issues, as no new refineries have been built, all must inevitably slow production to maintain and rebuild (turnaround) aging equipment. It's absolutely rediculous to think oil companies would drive up the prices if they were unable to sell and cash in on the product.</p></blockquote><p></p>
[QUOTE="TwoForFlinching, post: 1929344, member: 24500"] The biggest reason our refinery is making hand over fist cash on gas is because they chose to produce less of it, not because of a shortage of crude. With new frac technologies, and a substantially higher supply in these united states than was ever estimated. We're making diesel as priority, because of the substantial profit margin, greater that gasolines and lighter products. I imagine all refineries, including those in an import/port state like California, have realized the profit margin on diesel is a best return on the initial crude investment, thus driving the price Of gasoline up. No doubt refineries are having major issues, as no new refineries have been built, all must inevitably slow production to maintain and rebuild (turnaround) aging equipment. It's absolutely rediculous to think oil companies would drive up the prices if they were unable to sell and cash in on the product. [/QUOTE]
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Another Reason Not to live in CA. Gas hits record high.
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