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dalbuc

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: May 08, 2007, 09:10:33 AM

http://money.cnn.com/2007/04/17/news/economy/refineries/index.htm

EW YORK (CNNMoney.com) -- It's the same story every year.

Each spring, just before the summer driving season, gasoline prices skyrocket. And every year, these four words appear in news reports nationwide as a big reason for the runup: "lack of refining capacity." Then experts call for more refineries, politicians pledge to make the dirty behemoths easier to build, but guess what? Nothing really happens. Next year, repeat story.

So why hasn't a new refinery been built in the U.S. since 1976?

"There have been calls every year this decade for new refining capacity, yet no new projects initiated," said Geoff Sundstrom, a spokesman for AAA, the motorist organization. "Refining capacity has not kept pace with demand for gasoline." Numbers from the government prove Sundstrom correct.

In 1995 American drivers burned about 17 million more gallons of gasoline a day than the country produced, according to the government's Energy Information Administration. The difference was made up for by imports.  By 2005, the latest figures available, the gap had widened considerably to about 36 million.

All posts are opinions in case you are too stupid to figure that out on your own without me saying it over and over.

dalbuc

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#1 : May 08, 2007, 09:08:40 AM

http://money.cnn.com/2007/05/07/news/economy/gas_prices/index.htm?cnn=yes

NEW YORK (CNNMoney.com) -- With gas prices near record highs, experts say $4-a-gallon gasoline is just around the corner.

"I think it's going to happen," said Phil Flynn, a senior market analyst at Alaron Trading in Chicago. "Unless things change dramatically, I think we're going to see $4 a gallon."

As pump prices set new record, experts say demand and refining problems could push them to $4 in many parts of the country. Is relief in sight?

Already, prices in California average $3.48 a gallon, according to the motorist organization AAA. And one service station in San Francisco was charging $3.95, according to GasBuddy.com, a handy site that lists the cheapest and most expensive gas stations by city and state across the country.

Refinery problems and strong demand are the two main reasons cited for the runup. Prices hit a record high of $3.07 a gallon, according to the Lundberg survey released Sunday. Refinery output in the U.S. has been below normal for several months now, after fires and other accidents combined with longer than normal maintenance shutdowns, hurting production.

Peter Beutel, an oil analyst at consulting firm Cameron Hanover, noted in a recent report that refineries have not operated above 95 percent capacity since Hurricanes Rita and Katrina in 2005. Before 2005, the refineries, clustered around the Gulf coast and badly damaged in the storms, routinely operated at over 95 percent capacity.

Flynn said gasoline stocks have fallen for the past twelve weeks straight and are now at their lowest level for this time of year since 1956. This all comes just as the nation gears up for the summer driving season, spurred by vacationing families and students out of school.

Meanwhile, demand has shown no sign of easing. That's despite a nationwide average price of $3.07 a gallon for unleaded regular, a record, according to Trilby Lundberg, publisher of the Lundberg Survey of thousands of stations nationwide.

During the winter months gasoline demand grew at about 2.5 percent, according to the Energy Information Agency. Average demand growth is about 1.5 percent.  "More and more communities are going to see gasoline that approaches or exceeds $4 a gallon," John Kilduff, an energy analyst at Man Financial in New York, said recently. "Where we're currently at with prices, that's a given."

But not everyone is so convinced.

Wholesale gasoline prices have fallen 20 cents over the last week and prices for gasoline futures on the New York Mercantile Exchange have lost about the same amount over two weeks, according to Tom Kloza, chief oil analyst at the Oil Price Information Service, which gathers statistics for AAA.

Kloza said gasoline prices as measured by AAA have not yet hit a record, clocking in at $3.04 a gallon Monday, two cents shy of the 2005 record.

"I'm not sure we're going to get there," said Kloza. "I wouldn't be surprised to see our numbers stay the same, or maybe even tick lower."

When inflation is factored in, Lundberg's record of $3.07 still trails the all-time high in March 1981. At the time, gasoline cost $1.35 a gallon - and in today's dollars, that's $3.13 a gallon, said Lundberg.

Also, Americans earn a lot more now than they did in the early 1980s, so by some measures what people spend now on gas is only half of what is used to be.

In 1980, the average American had to work 105 minutes to buy enough gas to drive the average car 100 miles, David Wyss, chief economist at Standard & Poor's, said in a study last year. By 2006, the average American needed to work only 52 minutes, thanks in part to better fuel efficiency but mostly due to higher wages.

It's also worth noting that while $4 gasoline would be a record for American motorists, in Europe it's common due to high taxes. The average price for a gallon of gas in the Netherlands is over $7, and it's over $6 in many European countries. 

All posts are opinions in case you are too stupid to figure that out on your own without me saying it over and over.

samsdad

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#2 : May 07, 2007, 07:53:55 PM

...no hurricanes....crude not much different.....supply....plenty from what ive read online.

Whats the excuse this month? [banghead] [banghead]

Its 3 bucks  a gallon here in KC...usually we are lower than most of country so alot you have to be paying well over that.


Buc Wylde

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#3 : May 07, 2007, 08:00:26 PM

$3 a gal here also in central Florida. I'm actually thinking of getting rid of my truck and getting a <<choke>> car...

Quote from: Raheem Morris
We got to get better at doing something, and that is what we have to set our focus on and that is something to get better at. That\\\\\\\'s what we are trying to do right now.

dalbuc

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#4 : May 07, 2007, 08:01:31 PM

supply....


...and what is the rest of that phrase? Supply and....demand. Bing, yes, we have a winner. Gas prices always go up heading into summer as more people drive and demand goes up. Oil always spikes heading into summer (gasoline) and winter (heating oil) and drops back in fall and spring. Gosh, when was the last time we had one of these threads...why yes, back heading into winter.

All posts are opinions in case you are too stupid to figure that out on your own without me saying it over and over.

mjs020294

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#5 : May 07, 2007, 08:03:41 PM

...no hurricanes....crude not much different.....supply....plenty from what ive read online.

Whats the excuse this month? [banghead] [banghead]


Oil price last three months...NEXT.



mjs020294

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#6 : May 07, 2007, 08:04:58 PM

BTW - Gas price is usually just under oil price divide by 20.


samsdad

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#7 : May 08, 2007, 09:46:25 PM

i was reading on an petroleum forum.....yeah...the internet is officially too big now ;)   that they have been at around 47-52% refining capacity for the past few months.

I know they need to "re-tool" for summer gas production but thats a bit ridiculous..

i mean i know they should make a profit...really I do...Im not normally the tin foil hat wearing kinda guy.....BUT.....Oil prices go up to record or near record levels....profits go up....to record or near record levels.
Im glad to see the massive oil companies can make it through the lean times. The fact that they had record profits AGAIN after Katrina and that mess tells me right there that they manipulate the prices.

i read somewhere where big oil says they make just pennies per gallon......frankly i dont buy it.

Look for the quarterly profits soon....they PROFIT that much in 3 FRIGGIN months!!!

DALBUC...i realize that. I understand however.....whenever the price of oil goes up>>>>>>IMMEDIATELY the price of gas goes up and then when the oil prices go down.......it takes weeks to get down to 5 cents over what it was before....PLEASE explain that to me.

and by the way the whole......NEXT thing is a bit lame.......although that is probably the most ive read of one of your comments ;)







ufojoe

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#8 : May 08, 2007, 10:00:11 PM

http://www.wcsh6.com/news/article.aspx?storyid=59879

Gas Prices Continue To Soar

Web Editor:  Rhonda Erskine, Online Content Producer 
Created: 5/7/2007
WCSH6.com/mobile

Gas prices continue to create pain at the pump. Americans are paying over $3.00 for regular unleaded, and with Memorial Day just around the corner, it appears there is no end in sight how high prices may go.
   
Springer's Jewelers    

The national average for regular is just pennies away from a record high set following Hurricane Katrina, and many areas like California are paying much more.

With crude oil prices stabilizing and gas prices spiking, lawmakers are calling for a federal investigation of the nation's oil refineries.

Some drivers agree.

"It feels like we are being manipulated...seems like prices go up this time of year all the time," says Barbara Schwartz Glickman.

Analysts say the jump at the pump is due to a variety of factors. Global usage is up, concerns over tensions in the Middle East linger and refinery capacity is at a 20 year low.

"You put it all together and we're at record high prices and more than likely we might even take out the inflation adjusted all-time high of 3.13," says energy analyst Phil Flynn.

Analysts say the public has the most power at the pump when it comes to controlling gas prices. To help cut prices, simply drive less.

"We're gluttons, americans represent five percent of the world's population and yet we consume twenty-five percent of the world's oil," says Morningstar equity analyst Justin Perucki.

With gas prices creeping up consumers can expect to pay more for for other items, including Mother's Day flowers that have to be transported by trucks and planes.

Iyas

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#9 : May 08, 2007, 11:34:25 PM

Exxon Nets $9.3B Profit In First Quarter
Oil Giant Says Net Income Grew 10 Percent, But Revenue Fell Short Of Forecasts

(AP) The market price for crude oil was off more than $5 a barrel in the first quarter versus a year ago. The comparable price for natural gas also was down.

Exxon Mobil said oil production in the first three months of 2007 was slightly higher than a year ago, helped in part by increased production from projects in West Africa, Russia and the Middle East.

Natural gas production, however, was off from last year, hampered by mature field declines and lower European demand related to weather.

In a conference call with analysts, Henry Hubble, Exxon Mobil's vice president of investor relations, said the company continued to work toward turning over operational control of a joint venture project in Venezuela to its partner, Petroleos de Venezuela SA, Venezuela's government-controlled oil company. Earlier this year, Venezuelan President Hugo Chavez ordered by decree the takeover of oil projects run by foreign oil companies in the oil-rich Orinoco River region. He promised to occupy the fields in the region and fly the national flag over them by May 1.

But Hubble said discussions continue over the ownership stake of its Venezuelan operations. BP, Chevron Corp., ConocoPhillips, France's Total SA and Norway's Statoil ASA also have projects in the country.

"Those negotiations are continuing and will be for some time," Hubble said. He declined to speculate whether Exxon Mobil would continue to do business in Venezuela after such discussions are finished.

On the refining and marketing side of the business — known as the downstream — Exxon Mobil's earnings rose to $1.9 billion from $1.3 billion to start 2006, lifted by improved refining and marketing margins and more efficient refining operations.

A company's refining margin is the difference between what it costs to refine crude oil and what the company makes selling refined products, such as gasoline and jet fuel.

Exxon Mobil said it also saw improved profit margins at its chemicals business, where earnings of $1.2 billion were up from nearly $1 billion in the year-ago quarter.

During the first quarter, Exxon Mobil said it bought 108 million shares of its common stock at a cost of $8 billion. Shares outstanding were reduced from roughly 5.7 billion from at the end of 2006 to 5.6 billion at the end of March.

Exxon Mobil said it ended the first quarter with $34.6 billion in cash and $8.8 billion in debt.


---- Sure thing, they still making money!!!

BucsGuru

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#10 : May 09, 2007, 01:41:59 AM

I own  a full service station in southwest Georgia and we are selling gas for $2.799.  My cost for the last load I received was $2.76, which includes taxes that are close to .42 cent a gallon.
The shame in all of this is that there is absolutely no excuse for big oil to sticking it to the American consumer.  They have posted record profits for the last two years and it looks as if they are trying to make budget for 2007.  Too bad we can't use some of that crude out of Iraq!

karen anderson

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#11 : May 09, 2007, 01:44:46 AM

Guru--you do know they are using that to pay for the war, right?

BucsGuru

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#12 : May 09, 2007, 02:00:21 AM

who are you referring to as "they."

karen anderson

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#13 : May 09, 2007, 02:03:19 AM

The ones who are prosecuting the war & told us the oil in Iraq would pay for the war. You know, that money pit we have been flushing billions & billions of our tax money down.

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#14 : May 09, 2007, 02:05:28 AM

Actuallly Iraq controls the second largest oil fields in the world.  You would think with that type of asset, they wouldn't need our tax dollars to rebuild.  It does seem to be more to that story doesn't it!
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