Gasoline..............bad news!
WASHINGTON - With Congress and the White House pushing to increases the use of ethanol, the oil industry is scaling back its plans to expand refineries - which could keep gasoline prices high, possibly for years to come.
President Bush has called for a 20 percent decline in gasoline use by 2017 and the Senate is debating legislation for huge increases in the use of ethanol as a motor fuel. So, oil companies see a growing uncertainty about future gasoline demand and less need to increase refinery capacity to make more gasoline.
A shortage of refineries frequently has been blamed by politicians for the sharp price spikes in gasoline.
This spring, refiners, hampered by outages, could not keep up with demand and imports were down because of greater fuel demand in Europe and elsewhere. Despite stable - even sometimes declining - oil prices, gasoline prices soared to record levels and remain well above $3 a gallon.
Consumer advocates maintain the oil industry likes it that way.
"By creating a situation of extremely tight supply, the oil companies gain control over price at the wholesale level," says Mark Cooper of the Consumer Federation of America. He argues the refining industry "has no interest in creating spare (refining) capacity."
Only last year, the Energy Department was told that refiners, reaping big profits and anticipating growing demand, were looking at boosting their refining capacity by 1.6 million barrels a day, a roughly 10 percent increase.
But oil companies already have scaled those expansion plans back by nearly 40 percent. More cancelations are expected if Congress passes legislation now before the Sensate calling for 15 billion gallons of ethanol use by 2015 and more than double that by 2022, say industry and government officials.
"These (expansion) decisions are being revisited in boardrooms across the refining sector," says Charlie Drevna, executive vice president of the National Petrochemical and Refiners Association.
President Bush has called for a 20 percent decline in gasoline use by 2017 and the Senate is debating legislation for huge increases in the use of ethanol as a motor fuel. So, oil companies see a growing uncertainty about future gasoline demand and less need to increase refinery capacity to make more gasoline.
A shortage of refineries frequently has been blamed by politicians for the sharp price spikes in gasoline.
This spring, refiners, hampered by outages, could not keep up with demand and imports were down because of greater fuel demand in Europe and elsewhere. Despite stable - even sometimes declining - oil prices, gasoline prices soared to record levels and remain well above $3 a gallon.
Consumer advocates maintain the oil industry likes it that way.
"By creating a situation of extremely tight supply, the oil companies gain control over price at the wholesale level," says Mark Cooper of the Consumer Federation of America. He argues the refining industry "has no interest in creating spare (refining) capacity."
Only last year, the Energy Department was told that refiners, reaping big profits and anticipating growing demand, were looking at boosting their refining capacity by 1.6 million barrels a day, a roughly 10 percent increase.
But oil companies already have scaled those expansion plans back by nearly 40 percent. More cancelations are expected if Congress passes legislation now before the Sensate calling for 15 billion gallons of ethanol use by 2015 and more than double that by 2022, say industry and government officials.
"These (expansion) decisions are being revisited in boardrooms across the refining sector," says Charlie Drevna, executive vice president of the National Petrochemical and Refiners Association.
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They're gonna get us, one way or another. 0 -
I hear big oil is going around and trying to buy up all these ethanol plants. They want to make sure no one else gets in on their profits. 0 -
It takes more energy to produce a gallon of ethanol that can be extracted from it. Plus it pushes up food prices.
I believe that we need pt build enough nuclear power plants to provide all of our electrical needs. Then electric cars actually would be environmentally friendly and energy efficient. People think that electrical power is somehow "clean", not so son.0 -
It takes more energy to produce a gallon of ethanol that can be extracted from it. Plus it pushes up food prices.
I believe that we need pt build enough nuclear power plants to provide all of our electrical needs. Then electric cars actually would be environmentally friendly and energy efficient. People think that electrical power is somehow "clean", not so son.0 -
what good is ethanol doing any one, e85 is only about 20 cents cheaper around here for only having 15% gasoline 0 -
in some south american country they use sugar cane or something to make their fuel, i cant remeber, it was some dan rather special or something like that. 0 -
quote:Originally posted by SuburbanNoize
in some south american country they use sugar cane or something to make their fuel, i cant remeber, it was some dan rather special or something like that.
Brazil...
there was talk about using switchgrass or something to make ethanol, much more energy efficient since it practically grows itself and doesn't need all of the human effort that corn requires. Also does not take away from human and animal food supply.
they need to find a weed plant that will provide good ethanol yields and just plant it along highways. They mow those anyway, so bag instead of mulching and truck the clippings off to the ethanol plant [:D]0 -
Old fool quote: "I believe that we need pt build enough nuclear power plants to provide all of our electrical needs. Then electric cars actually would be environmentally friendly and energy efficient. People think that electrical power is somehow "clean", not so son."
Right on target guy. It is the only way to go. I would rther have a nuclear power plant nearby than a refinery. Much less polution and really, how many actual accidents from them?? I see that the new Pheonix 4X4 trucks get about 135 miles on a charge with their new batteries, and batteries good for over 10 years. Sure, a price tag of $45,000 but we something like this. I guess you guys didnt go through
WW 2 when the max. speed limit was 35 mph and gas was rationed. We
still lived with it though, got to our jobs and existed.0 -
I read somewhere that a 50/50 mix of spotted owl blood and dolphin blood will provide a average of 47 miles to the gallon in a Ford F350 while towing a 7,0000 pound fifth wheel that has just came from Home dePOT after picking up 15 day laborers.
XXXXXX0 -
If you want is cheap energy then forget all about US produced ethanol because it is not a cheap source for motor fuel and has never been represented to be one. If people actually want to do something about our growing addiction to foreign oil then ethanol offers a viable means of cutting down on our yearly imported petroleum "fix". There will never again be anything that you can pump into your car or truck as a motor fuel sold for $1 per gallon because the market has demonstated that crude oil prices of $50+ per barrel are easily sustainable and $3 per gallon motor fuels have had absolutely no impact on people's driving styles. Because of this there is no reason to lower prices on motor fuels in this country, at least not until people park their private vehicles for one full week per month and car pool of use public transportation. 0 -
No.
Posted - 06/17/2007 : 10:28:55 PM Show Profile Reply with Quote
"If people actually want to do something about our growing addiction to foreign oil then ethanol offers a viable means of cutting down on our yearly imported petroleum "fix"."
Doug0 -
Heard that ethanol contains less energy than gasoline, so fuel consumption increases when ethanol is blended into gasoline. At the 10 per cent blending level, fuel consumption increases by about 3.5 per cent, so motorists have to buy 3.5 per cent more fuel to travel the same distance - lower gas economy. 0 -
stop consuming![8] 0 -
Buy a 4 banger.
JM0
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