The Big Squeeze By Big Oil

cp

Veteran Member
Joined
Jan 25, 2001
Location
usa
TDI
2006 TDI Beetle
That's the lead story on front page of the 6/26 Kansas City Star.

You can read the whole article by going to The KC Star website but it's one of those sites where you'll have to register to read it.

The gist of it is that the number of refineries in the US has declined from 324 in 1981 to 148 today. Capacity has not decreased by a lesser amount-- in 1981 the 324 refineries could refine roughly 18.5 million barrels per day; today's output is something like 17 million barrels, around a 9% decrease in capacity. But-demand is up 38% in the same period, resulting in a 73% increase in the inflation-adjusted price of unleaded.

The saddest part of the story is that none of this is coincidence. They discovered instances in which oil companies refused to sell old refineries to cash-in-hand buyers, preferring instead to shutter the refinery so its capacity disappeared, thus 'tightening the market'. Other attempts by independents to build refineries have been thwarted in their efforts, but not by who you'd suspect (the EPA).

A disheartening, but interesting article. I can't blame the oil companies for wanting to be more efficient, but now we are running on the ragged edge of capacity with nothing in reserve.
 

Geordi

Veteran Member
Joined
Jan 4, 2002
Location
Somewhere between Heaven and Hell. But it is reall
TDI
14 JSW DSG, 03 Wagon 01M, 400k and IPT performance auto!
And nobody believed the reports when it was happening, that Enron was deliberately manipulating the power market to greatly increase it's own profits. Here we are with big oil doing EXACTLY the same thing, but nobody will believe it... Because W says it isn't happening. Hmm. Any farmers here? Want to let that wolf guard your chickens? I'm sure that gleam in his eye doesn't mean anything...
 

maxforce

Veteran Member
Joined
Aug 17, 2003
Location
VA
TDI
04 Golf, 04 Jetta, 84 300SD
why shouldn't they....we will buy it as long as it is there. People at work tell me they will drive there full size SUVs to work (by themselves) as long as someone sells gas. They would not be caught dead on the highway in a little car like mine. So I say again....why shouldn't they.
 

IndigoBlueWagon

TDIClub Enthusiast, Principal IDParts, Vendor , w/
Joined
Aug 16, 2004
Location
South of Boston
TDI
'97 Passat, '99.5 Golf, '02 Jetta Wagon, '15 GSW
why shouldn't they....we will buy it as long as it is there. People at work tell me they will drive there full size SUVs to work (by themselves) as long as someone sells gas. They would not be caught dead on the highway in a little car like mine. So I say again....why shouldn't they.
Right you are. Most of us completely rejected the need for conservation once fuel prices went back down. Did we think this would last forever? I've always been drawn to efficient cars because I like the idea. Frankly, I bought my first TDI because I wanted the range and I thought it was cool. Guess it was a good idea for other reasons, too.
 

TornadoRed

Top Post Dawg
Joined
Aug 3, 2003
Location
West Des Moines (formerly St Paul)
TDI
2003 Jetta TDI wagon, silver; 2003 Jetta TDI wagon, indigo blue; 2003 Golf GL 5-spd, red (PARTED); 2003 Golf GLS 5-spd, indigo blue (SOLD); 2003 Jetta TDI wagon, Candy White (SOLD)
I saw an article somewhere this weekend about plans to go forward for a new refinery east of Yuma, AZ. The investors wanted to build in or near Maricopa County, but gave up because of all the resistance from environmental groups. The county where they are now planning to build only has 1000 population or so.

The lesson is, if you plan to build a refinery, expect LOTS of opposition. Maybe if fuel costs go over $5/gallon, it will become easier to get the permits.
 

Guttboy

Veteran Member
Joined
May 8, 2005
Location
Colorado at 7500'
TDI
Jetta MkV 2005.5 Platinum Gray/Gray Leather Pk2
I am all for alternative fuels, solar power, wind power etc.

However, until the cost of petroleum products get high enough to make it uncomfortable for the majority of Americans, nothing is going to happen here in the states.

Thats my opinion....but I think it is pretty well founded.

Hmmmmm....anyone remember the gas crunch in the 70's? What happened since then? Not much as far as I can tell. Seriously....30 years later do we have vast improvements in efficiency or newer fuel technology? NO...well at least not on a national scale.

I wish this were not the case...but I fear it is. Im doing my part I suppose.....
 

nicklockard

Torque Dorque
Joined
Aug 15, 2004
Location
Arizona
TDI
SOLD 2010 Touareg Tdi w/factory Tow PCKG
Re: The Big Squeeze By Big Oil *DELETED*

Post deleted by nicklockard
 

IndigoBlueWagon

TDIClub Enthusiast, Principal IDParts, Vendor , w/
Joined
Aug 16, 2004
Location
South of Boston
TDI
'97 Passat, '99.5 Golf, '02 Jetta Wagon, '15 GSW
Sure I remember both fuel shocks. In '73 I was driving a cherry 57 bug with about 40K on it. Beautiful car, absolutely trecherous to drive. Numb steering, oversteer, no power, lousy brakes. But it got 40 MPG at Nixon's 50 MPH speed limit.

In '78 I was driving a brand spanking new Rabbit L Diesel. I bought the car because I loved it and my father in law to be thought I was the brightest guy on earth to have anticipated the crisis.

Here we go again. Anyone learn anything? In '78 it was Ford Galaxies; today it's Ford Expeditions.
 

McBrew

Top Post Dawg
Joined
Oct 30, 2002
Location
Annapolis, MD
TDI
2003 Golf GLS TDI, 5 speed, Silver/Grey
resulting in a 73% increase in the inflation-adjusted price of unleaded.
I believe this should be the NON-inflation adjusted price. If you take inflation into account, the price of regular gas spiked to just over $3/gal in March of 1981.
 

cp

Veteran Member
Joined
Jan 25, 2001
Location
usa
TDI
2006 TDI Beetle
resulting in a 73% increase in the inflation-adjusted price of unleaded.
I believe this should be the NON-inflation adjusted price. If you take inflation into account, the price of regular gas spiked to just over $3/gal in March of 1981.
I was quoting the article. You could very well be right.
 

RabbitGTI

Top Post Dawg
Joined
Jul 20, 1997
Location
Wisconsin
TDI
B4 Passat Sedan
why shouldn't they....we will buy it as long as it is there. People at work tell me they will drive there full size SUVs to work (by themselves) as long as someone sells gas. They would not be caught dead on the highway in a little car like mine. So I say again....why shouldn't they.
And they are the exact same azzholes who speed recklessly, tailgate and cut people off because they drive "safe" vehicles.
 
Top