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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: 1930161" data-attributes="member: 24500"><p>I posted the wall street reference due to the constant complaining about oil prices. </p><p></p><p>I'm calling BS on this gasoline shortage being due to closing refineries/oil shortage/not enough refineries. </p><p></p><p>I'm arguing that refineries are not producing as much gasoline because the profit margin on diesel is higher. Production costs have been cut thanks to a streamlined hydro-treating processes, and a simplified method for refineries making their own hydrogen instead of buying it on the market. Brings the manufacturing price down significantly. This is why more crude is allocated to diesel production, plus demand for low sulpher diesel is at an all time high. The byproducts of low sulpher diesel are also building higher margins of profit. Thus, California isn't running out of oil, or having trouble getting it in it's ridiculously limited pipelines. Otherwise, we would see a shortage of all petrochemicals, and due to such a shortage, it would even affect us in Oklahoma at the pump. It's hard to show "proof" of a guarded industry standard, ie- make the most money you can, but let's try this flow chart on for size. It's a few years old, but if you can comprehend, you'll see how this trend started back then.</p><p></p><p><a href="http://www1.eere.energy.gov/vehiclesandfuels/pdfs/deer_2008/panel2/deer08_leister.pdf" target="_blank">http://www1.eere.energy.gov/vehiclesandfuels/pdfs/deer_2008/panel2/deer08_leister.pdf</a></p></blockquote><p></p>
[QUOTE="TwoForFlinching, post: 1930161, member: 24500"] I posted the wall street reference due to the constant complaining about oil prices. I'm calling BS on this gasoline shortage being due to closing refineries/oil shortage/not enough refineries. I'm arguing that refineries are not producing as much gasoline because the profit margin on diesel is higher. Production costs have been cut thanks to a streamlined hydro-treating processes, and a simplified method for refineries making their own hydrogen instead of buying it on the market. Brings the manufacturing price down significantly. This is why more crude is allocated to diesel production, plus demand for low sulpher diesel is at an all time high. The byproducts of low sulpher diesel are also building higher margins of profit. Thus, California isn't running out of oil, or having trouble getting it in it's ridiculously limited pipelines. Otherwise, we would see a shortage of all petrochemicals, and due to such a shortage, it would even affect us in Oklahoma at the pump. It's hard to show "proof" of a guarded industry standard, ie- make the most money you can, but let's try this flow chart on for size. It's a few years old, but if you can comprehend, you'll see how this trend started back then. [url]http://www1.eere.energy.gov/vehiclesandfuels/pdfs/deer_2008/panel2/deer08_leister.pdf[/url] [/QUOTE]
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