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blessedinnyc -> RE: Should there be a cap on Gas prices?? (4/21/2008 5:59:53 PM)
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quote:
ORIGINAL: mapachito13
quote:
ORIGINAL: stamper_ben
quote:
Saudi Arabia, the world’s biggest oil producer, has put on hold plans to increase long-term production capacity from its vast oil fields beyond existing proposals, its most powerful policymakers have said.
In a series of statements, including one by the king himself, the kingdom has warned consumers it does not reckon there is a need for further expansion beyond 12.5m barrels a day, an assumption disputed by the world’s biggest developed countries.
The realisation Saudi Arabia will not increase production to 15m barrels a day as quickly as important consumers and the markets had assumed could put further pressure on oil prices, which touched fresh records last week. Source
All the more reason to fully tap our own supplies.
Just read on the AP that gas refiners in THIS country are cutting back production to post-Rita and Katrina levels.
"SAN FRANCISCO (MarketWatch) -- A production slowdown at the nation's refineries, now operating at levels last seen in the aftermath of Hurricane Katrina in 2005, couldn't come at a more troublesome time for consumers watching pump prices flirt with $4 a gallon.
Such low production rates could create a new set of problems for refiners, already operating at the brink of loss. Utilization rates at 30-month lows threaten to spark probes by lawmakers, who have been holding a series of hearings on the rampant rise in gasoline and diesel prices.
"If this operating level persists, the industry will likely see another round of intense legislative scrutiny," said John Kilduff, an analyst at futures brokerage MF Global.
U.S. refineries operated at 81.4% of their operable capacity in the week ending April 11, the Energy Department's statistical arm said last week. The last time the utilization rate fell below 80% was in October 2005 after hurricanes Rita and Katrina devastated refineries along the U.S. Gulf Coast."
Was there a hurricane that no one noticed??
Crack spreads are down. Thus, some of the less profitable portions of the refineries aren't operating right now. On top of that, there's also a switch to summer gasoline blends underway, and this usually means that refineries can't operate above ~ 90% capacity during this time, anyways.
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