Biden considering emergency measures to boost refinery output

[sportage]

I don't know.... And I don't buy it, this whining about high gas prices.

The volume of traffic on the streets has not diminished one bit. In fact.... I'd say there are actually MORE cars on the roads than before.
So despite high gas prices, obviously people are willing to pay the price. It has not slowed the desire to drive.
Thus.... I am not impressed with all this whining about high gas costs. I won't believe it even matters to the average motorist until I see fewer cars on the roads.

People must be printing money in their basement, or discovered credit cards having no limit. But whatever it is, you can bet on two things that people will always find way to afford.... the new iPhone release, and gas for the car.

 

[Roger Wilco]

US distillate capacity is down 4M b/d since early 2020 and refiners do not want to bring any of that back online. As it stands current capacity is running mid 90% utilization. They wrote back to Biden "well drill more oil" when that isn't the major problem now. They just want to rake in as much cash as possible no matter what at this point.

Any serious disruption to remaining capacity will likely have catastrophic consequences. If the gulf coast takes a couple hurricanes or there is a massive power outage in Texas shit will get real.

I won’t be surprised.

NOAA among others are predicting another above-average season. Potentially 3-6 major hurricanes.

 

[Brovane]

High gas prices don't exactly constitute an emergency.

At least with N95s and COVID there was an imminent public health threat and a clear lack of production capacity.

Where's the justification for invoking DPA?

If we have shortages of Diesel fuel what do you think could happen at the local grocery store?

 

[BoomerD]

I think its getting pretty clear that the oil companies are flexing political leverage here; they can time their "maintenance" or slow-walk bringing refineries back up, reap the benefits to their margins and exact maximum political pressure on dems right before midterms so they can swing the balance of power towards the right, who will always cater to their demands, and minimize or slow-walk renewables into the market.

Its grey davis all over again.

Gray Davis got fucked by the energy companies... Thanks to Pete Wilson and his cronies.

 

[Fenixgoon]

Id argue stable petroleum supplies comprise a fairly sizable strategic risk, its the whole reason we have the strategic reserve.

Certainly. But is there a shortage? I haven't seen any news regarding actual product shortage.

This isn't the 1970s oil embargo.

If we have shortages of Diesel fuel what do you think could happen at the local grocery store?

Is there a shortage in the first place?

 

[Homerboy]

what are we all going to say when Exxon, BP etc all post record profits in 2022?

 

[Brovane]

Certainly. But is there a shortage? I haven't seen any news regarding actual product shortage.

This isn't the 1970s oil embargo.

Is there a shortage in the first place?

Wouldn't the point of acting now would be to prevent a crisis from happening?

Do you want to wait until store shelves are empty?

https://www.washingtonpost.com/busi...f4623e-cb83-11ec-b7ee-74f09d827ca6_story.html

 

[uclaLabrat]

Certainly. But is there a shortage? I haven't seen any news regarding actual product shortage.

This isn't the 1970s oil embargo.

Is there a shortage in the first place?

Is there a 1970s style "shortage" where its being rationed? No, not yet. But obviously the supply is much lower than demand, hence the price.

 

[Zorba]

Almost none. What Biden should tweet is that he is having the DoE look into creating a national oil company to make sure that gas supply remains at acceptable levels. That would get them moving.

And announce the DOJ is investigating them for illegal cartelling.

 

[esquared]

In 2009 oil peaked at around $145/bbl. Gas was around 2.50-2.80. Today oil peaked at $122. about a week ago yet gas is $5.

This smells of profiteering by the oil companies

It did go up to the mid 3s by 2011

Actually when oil was 145/barrel in 2009, gas in California was around 4.50/gal.
It was the most I ever paid for gas until last month when I paid 5.30/gal.
I remember thinking back then that I just paid over 80.00 to fill up my tank on my Ranger.

Edit:
It was in June and July 2008 when gas here was 4.50.

Gasolines Prices in Los Angeles County, California

Almanac facts, information and trivia about Los Angeles County, its people, cities and communities.

www.laalmanac.com

The next time I fill up, probably next week, will be north of 6.50/6.75.

 

[EduCat]

Here in the chi I paid $7.50/gal to put the premium in one of my cars. (an old pos that takes premium) Haven't been filling the entire tank. Pretty soon its going to be hard for regular folks to live.

 

[rommelrommel]

The whole industry is protecting margin this time around no matter what it does to consumers. At these levels though there starts to be political risk to them because if the Rs take over and they also cannot get prices (limited existing leverage) down more extreme measures will end up on the table.

I’m not sure that tax breaks and subsidies are much a threat.

 

[Roger Wilco]

Biden says he’s willing to use the Defense Production Act.

Biden willing to use Defense Production Act to boost refining capacity

President Joe Biden is willing to use the Defense Production Act if it would help the United States increase its oil-refining capacity, White House press secretary Karine Jean-Pierre told reporters on Wednesday.

www.reuters.com

 

[Brainonska511]

Actually when oil was 145/barrel in 2009, gas in California was around 4.50/gal.
It was the most I ever paid for gas until last month when I paid 5.30/gal.
I remember thinking back then that I just paid over 80.00 to fill up my tank on my Ranger.

Edit:
It was in June and July 2008 when gas here was 4.50.

Gasolines Prices in Los Angeles County, California

Almanac facts, information and trivia about Los Angeles County, its people, cities and communities.

www.laalmanac.com

The next time I fill up, probably next week, will be north of 6.50/6.75.

According to inflation calculators, that $4.50/gal in 2009 is ~$6.13 today, so gas is still technically less expensive now than it was then.

 

[Zorba]

According to inflation calculators, that $4.50/gal in 2009 is ~$6.13 today, so gas is still technically less expensive now than it was then.

You see, though, gas is never supposed to get more expensive. It's America's god given right to have deflating gas prices.

 

[gothuevos]

Late stage capitalism in effect.

Why are people blaming Biden? Do they want price controls? Hey, that's one reason China has some of the lowest inflation despite what's going on globally.

 

[esquared]

According to inflation calculators, that $4.50/gal in 2009 is ~$6.13 today, so gas is still technically less expensive now than it was then.

That was for June and July 2008. It's not less expensive now as gas in my area is more than 6.13, so not a good comparison.
No one in the states was paying 4.50/ gal except California and possibly Hawaii back in 2008.

Not really complaining as California has always been a dollar or more per gallon because of the switch to less polluting fuel in the spring. I've been used to paying more for years. It's just the way it is in the golden state.

 

[BoomerD]

You see, though, has is never supposed to get more expensive. It's America's god given right to have deflating gas prices.

Sorry...gasoline should still be around 35 cents/gallon.

 

[GodisanAtheist]

Bet there's a huge pressure campaign behind the scenes to get Zelensky to capitulate, at this point.

If not, then there will be, pretty soon I imagine.

- That would have been Trump's move. He liked to pick a winner and go all in on one side, and anytime it was someone vs Russia he would always pick Russia. It's not always a bad move (although IMO it would have been in Ukraine's case) and typically brings about "peace and stability" much quicker than the traditional arsenal of democracy/ multilateral negotiating table approach.

Almost none. What Biden should tweet is that he is having the DoE look into creating a national oil company to make sure that gas supply remains at acceptable levels. That would get them moving.

-Sounds like a good way for Biden to catch a case of Lincoln-Kennedy syndrome.

And announce the DOJ is investigating them for illegal cartelling.

-One of the most absurd ironies of that has come out of the prior admin's deep state nonsense is that is there is a deep state in America, it's an Anarcho-Capitalist one, not some Communist thing.

 

[senseamp]

I see lots of new huge SUVs and trucks. Especially in the countryside.

 

[cytg111]

Sorry...gasoline should still be around 35 cents/gallon.

I know you're joking but can anyone break that price point down for me?
From extraction in the oil field, processing, transport by cargo ship, distribution to the hose you put in your tank.

Now whats the cost of Milk? - And you dont even have to wait for the cow to be dead 200.000 years and suck it out of the ground.

 

[zinfamous]

Gray Davis got fucked by the energy companies... Thanks to Pete Wilson and his cronies.

yeah some of the more intriguing discovery from the ENRON fallout was audio and emails between Enron stooges that were just selectively shutting off power to various CA towns during those blackouts, purely for political spite, that the dingbats of California blamed on Davis, leading to the recall.

With that revelation, I couldn't figure out why they didn't just remove the Governator because at that point, the recall of Davis was clearly illegitimate. You have to punish republicans for their illegal bullshit or they will keep doing it--as we well know by now

 

[zinfamous]

Sorry...gasoline should still be around 35 cents/gallon.

nah. $8/gallon is about right. I mean, if we want to keep living on this planet. But you do you.

....90% of that being taxes, of course. But I'd also be happy if useless assholes with their giant useless rolling houses have to pay the bulk of the exorbitant cost...cylinder/weight of vehicle excise costs. I think any suburban dickbag driving an F150 should be paying $10/gallon. Any SUV or "crossover," same. I don't even care if it's a "hybrid." Your useless big car should be prohibitively expensive because you also aren't paying your fair share of the roads you are destroying at a greater rate than others.

4 cylinders (or less), and under 2k kg, about $4/gallon.

This is the way.

 

[thilanliyan]

You see, though, has is never supposed to get more expensive. It's America's god given right to have deflating gas prices.

It was one of the 11 commandments of GOP Jesus IIRC.

 

[Thump553]

I wish Biden success with using emergency measures to force refineries to quit holding back on production but unfortunately the decks are totally stacked against him. Primarily the US has pretty much lost the war (mostly through surrender) on antitrust regulation several decades ago. Coupled with the current judiciary's animosity towards a Dem President exercising emergency power in situations like this (remember when the courts crushed Obama's temporarily shut down on new oil and gas leases after the Gulf oil leak?) and the business end of the GQP absolutely dedicated to giving business whatever they ask for, I have grave doubts anything positive will happen.