Midwest Gasoline to Spike $0.50-$1.00 Per gallon

[BX23S-1]

Bribem`nomics ????

 

[Torvy]

Many of the people opposed are Alaska natives who know more about Alaska than anyone else. Operating costs are also a factor. Why develop an oil field in the arctic circle, when the Permian, Gulf coast, and Bakkan oil is multiples cheaper to produce and has infrastructure in place? Labor, supplies, transportation, and everything costs more on the north slope of Alaska. And companies are making both record production and profit in the lower 48; our states especially at #1 and #2.

Except, most of the Alaskans approve of the drilling. Most of the opposition is, and I quote "from the lower 48". Are there native people in Alaska who oppose? Of course, put 10 or more random people in a room and you will find various opinions.

Willow oil project approval intensifies Alaska Natives' rift

Many communities on Alaska's North Slope celebrated the project's approval, while some Alaska Natives blasted the decision.

richmond.com

 

[jyoutz]

Except, most of the Alaskans approve of the drilling. Most of the opposition is, and I quote "from the lower 48". Are there native people in Alaska who oppose? Of course, put 10 or more random people in a room and you will find various opinions.

Willow oil project approval intensifies Alaska Natives' rift

Many communities on Alaska's North Slope celebrated the project's approval, while some Alaska Natives blasted the decision.

richmond.com

The Inuits who inhabit that part of Alaska oppose development on the North Slope. But it’s irrelevant. Petroleum companies want to develop profitable oil fields, not work in the Arctic circle. Ever since the new horizontal drilling systems and other technologies came on line, they are recovering so much oil from the lower 48 fields that there’s not interest in a costly endeavor in the Arctic circle where everything is more difficult, the season is short, costs are astronomical, and the profits are much slimmer. The Delaware basin portion of the Permian in TX and NM contain the largest known reserves in the world and operating costs are cheap. My state has been receiving record royalties and so has yours from the activities there and production is at a record high for the US. It’s unfortunate for Alaska, but oil revenues in that state are declining and it doesn’t look like that’s going to be a major industry there in the future. Shareholder returns are better elsewhere.

 

[Torvy]

"The Inuit " do not oppose it. Some people who happen to be Inuit oppose it.

Again, the high cost is due, in part, to the obstruction actions made by those in the lower 48.

Production is not an either or thing, more is better as it creates downward pressure on world prices while also giving us the ability to withstand various world events without depending on others.

Alaskan crude is heavier than that in Texas and can be used in the refineries on the Gulf Coast...Part of the reason pipelines are important and why shutting them down is such a problem. If we get into another WW, we will be better off having Alaska Crude available. As you have noted, our refineries are geared to handle the worst (and cheapest) oil. More refineries would be great. Problem there is government interference. Companies don't want to fight an uphill battle in DC and have the rug pulled out (again) when they do win.

 

[jyoutz]

"The Inuit " do not oppose it. Some people who happen to be Inuit oppose it.

Again, the high cost is due, in part, to the obstruction actions made by those in the lower 48.

Production is not an either or thing, more is better as it creates downward pressure on world prices while also giving us the ability to withstand various world events without depending on others.

Alaskan crude is heavier than that in Texas and can be used in the refineries on the Gulf Coast...Part of the reason pipelines are important and why shutting them down is such a problem. If we get into another WW, we will be better off having Alaska Crude available. As you have noted, our refineries are geared to handle the worst (and cheapest) oil. More refineries would be great. Problem there is government interference. Companies don't want to fight an uphill battle in DC and have the rug pulled out (again) when they do win

Whatever argument you make, the petroleum industry in the US is investing and expanding elsewhere. Alaska oil as an industry is in decline. The high cost is not just due to obstruction. Everything is astronomically high in Alaska: food, transportation, supplies, wages, climate adaptations for equipment, etc…

 

[Hay Dude]

Funny how we were energy independent with the previous administration and not with the current administration, yet some keep on spewing the garbage that it has nothing to do with gov___ment or pol___tics

 

[WM75Guy]

The term energy independent was used incorrectly. We were a net exporter of crude oil then, now we are back to being a net importer. The US exports oil to other countries to be refined, as we don't have the domestic capacity for that type of oil, and then brings back finished products. Even when being touted as energy independent, we were dependent to some extent on others to supply our energy needs.

Light crude oil is primarily used to create fuels such as gasoline, diesel and aviation fuels. Heavy crude oil provides feedstock for plastics, petrochemicals, other fuels and road surfacing. Heavy oil can also be refined into transportation fuels. US refineries were built for refining heavy crude, as it is more profitable. You get a larger variety of products from heavy crude. Now that the majority of domestic production is light sweet crude, refiners are increasing capacity to refine it. Exxon/Mobil's expansion of its Beaumont refinery is an example.

ExxonMobil boosts fuel supply with $2 billion Beaumont refinery expansion

IRVING, Texas – ExxonMobil today announced the successful startup of its Beaumont refinery expansion project, which adds 250,000 barrels per day of capacity to one of the largest refining and petrochemical complexes along the U.S. Gulf Coast. Supported by the company’s growing crude production...

corporate.exxonmobil.com

 

[sd455dan]

"The Inuit " do not oppose it. Some people who happen to be Inuit oppose it.

Again, the high cost is due, in part, to the obstruction actions made by those in the lower 48.

Production is not an either or thing, more is better as it creates downward pressure on world prices while also giving us the ability to withstand various world events without depending on others.

Alaskan crude is heavier than that in Texas and can be used in the refineries on the Gulf Coast...Part of the reason pipelines are important and why shutting them down is such a problem. If we get into another WW, we will be better off having Alaska Crude available. As you have noted, our refineries are geared to handle the worst (and cheapest) oil. More refineries would be great. Problem there is government interference. Companies don't want to fight an uphill battle in DC and have the rug pulled out (again) when they do win.

While I agree their has been political pressure exertion against Oil ad gas in general, there are other factors like profitability for oil companies and especially small operators, many went broke and lost everything or were bought out by big fish and consolidated when they had to pay to get rid of crude production in 2020.

Shutting down refineries isn't helping the retail cost of diesel and gas in the US either.

Some of the oil companies might follow their corporate mission statement of "highest return" to share holders and in some cases that means shutting down a functioning refinery.
Doing so certainly will not make gasoline or diesel less expensive.

Some of the shut down refineries since Covid
Many of which the claim is "to convert in some way to renewables"
I am going to take that with a grain of salt , because the immediate effect is higher prices at the pump.. Other things like storm damage and being old and unprofitable were mentioned as well

Shell Convent, St. James, LA
Marathon, Martinez, CA and Gallup, NM. Capacity: 161,000 bpd (Martinez); 27,000 bpd (Gallup)
Phillips 66, Rodeo, CA and Belle Chasse, LA. Capacity: CA: 120,200 bpd, LA: 255,000 bpd
Hollyfrontier, Cheyenne, WY. Capacity: 52,000 bpd
Calcasieu Refining, Lake Charles, LA. Capacity: 135,500 bpd
Limetree Bay Energy, St. Croix, USVI. Capacity: 210,000 bpd

A ninth, LYONDELLBASELL planned in 2025 to shut down its refinery.. and so on.

This info is about a year old so looking to see if some of these plants are back on line or if others have also closed.

Oil Refinery Closures in an Era of Transition

If the US isn’t ready to move to biofuels, it could become a slippery slope.

www.powderbulksolids.com

 

[Torvy]

So it sounds like we need a new and improved farmers co-op that gets a refinery or two going in the Panhandle to refine WTI into diesel. Members only sales.

 

[MossRoad]

I've said it before and I'll say it again... we were never oil and gas independent since all of the oil and gas is produced by private industry and is for sale on the international market. The international market is what drives prices.

Unless the government (we the people) takes over private industry of oil and gas production, or bans the sale of oil and gas produced within the US on the open international market, that will always be the case.