......OPEC's drops in production are barely keeping up with the global drop in use, but refinery closures in the US are keeping up the price of fuels. The refinery companies say they are doing maintenance, but they know how to create a tight market and keep prices and profits up. Nonetheless, when figuring in inflation, gas prices aren't that different from years ago, though diesel is much higher.
Gene
I wondered what the excuse was this time. Prices got all the way down to $1.40 here in the Atlanta area around Christmas. Now they are in the $1.80 range. You, know, I'm really starting to believe that Oil Company executives actually are bottom feeders. The last thing the economy needs right now is another huge run-up in energy prices. Maybe one of our loud mouth politicians can do something about it. Nah, what the hell am I thinking. Good grief.
Jim
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You, know, I'm really starting to believe that Oil Company executives actually are bottom feeders.
Jim
Jim, you have to know which oil company execs to blame. The big oil companies sold off many of their refineries years ago because profits at that level were low. Valero bought a lot of them.
This from Wikipedia:
"Valero Energy Corporation (NYSE: VLO) is a Fortune 500 oil and gas refining and retail company based in San Antonio, Texas. The company owns and operates 18 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.3 million barrels per day, making it the largest refiner in North America.[1] Valero is also one of the nation's largest retail operators with more than 5,000 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names, including Valero, Diamond Shamrock, Ultramar, Shamrock, and Beacon.
"Valero also retails gasoline branded as Valero, Shamrock, Diamond Shamrock, Ultramar, Beacon, and Total (under license from Total S.A.). While this arm of the company is the most visible to the public, it is, according to CEO Bill Klesse, "a very small part of [Valero's] operations"[1].
"Valero is gradually shifting its focus from being a discount gasoline brand to becoming a premium brand. As part of that shift, Valero has begun to rebrand its Ultramar, Beacon, Total and Diamond Shamrock stations to the Valero brand. The Beacon and Shamrock brands are used by retailers as a low cost alternative to the premium Valero brand. (The Shamrock brand, in the Valero empire, is based on the former Shamrock Oil and Gas Company, which merged with Diamond Alkali in 1967 to form Diamond Shamrock.) The name Ultramar, while being eliminated in the U.S., will still be used as Valero's brand name in Canada. Valero introduced its updated Corner Store retail concept on December 28, 2007, opening the company's first 5,500-square-foot (510 m2) prototype in western San Antonio."
This entry may be out of date. This is not a good time to be going premium. Another site says they have 17 refineries and capacity of 3.1 M barrels/day.
It's the largest independent refiner. Valero closed a couple of refineries last month. For quite a few years refineries deferred maintenance as they were running full bore to keep up with demand, so some maintenance is needed. If someone wants to spend more time researching, it wouldn't be too hard to find out how many refineries are closed right now and what the market share each refining company has and how much each has cut back. If the big companies have each cut back equal to their market share, that doesn't necessarily show collusion. It could show clever marketing, or there could be phone calls between them that are impossible to trace. That's today's research project. I'm going to work out.
The "big" oil companies are not to blame. All of the "big" oil companies combined only control about 6% of the market and therefore have little influence on pricing. Not to mention most of us have stock in these companies through 401 Ks and mutual funds. I don't think you really want them to fail or do badly in the market. If you want to be angry with someone be angry with the governments of the countries with the national companies who control most of the market (most of which don't like us). Even then the market and supply and demand have more to do with it than anything else. At least that is my humble, woefully uninformed opinion.
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While unleaded had gone up approx. 50 cents a gallon diesel here has stayed the same price. Diesel has been running about 90 cents a gallon more than regular unleaded until just recently. Another teaser for diesel users???
I thought this was an outstanding price~!
but..the facts don't back this price up? [GASPRICE] - Find The Lowest Gas Prices Near VALDOSTA, GA at MapQuest!
Maybe the diesel prices shot up over night?
The cheapest diesel prices I saw was..
Diesel 1.95$, with the average being in the 2.05$ and up range.
I guess I will join the riff raff and, stay home now..
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The "big" oil companies are not to blame. All of the "big" oil companies combined only control about 6% of the market and therefore have little influence on pricing. Not to mention most of us have stock in these companies through 401 Ks and mutual funds. I don't think you really want them to fail or do badly in the market. If you want to be angry with someone be angry with the governments of the countries with the national companies who control most of the market (most of which don't like us). Even then the market and supply and demand have more to do with it than anything else. At least that is my humble, woefully uninformed opinion.
Then explain to me how those companies made record profits during the peak of gas prices last summer when people en masse started using LESS gas. Big oil was sticking it to all of us at the pump and laughing all the way to the bank. BTW, most of our oil imports come from Canada, not some middle eastern terrorist state. That excuse has been shoved down our throats for too long. We could stop buying middle eastern oil completely and no one would miss it but them.
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Then explain to me how those companies made record profits during the peak of gas prices last summer when people en masse started using LESS gas. Big oil was sticking it to all of us at the pump and laughing all the way to the bank. BTW, most of our oil imports come from Canada, not some middle eastern terrorist state. That excuse has been shoved down our throats for too long. We could stop buying middle eastern oil completely and no one would miss it but them.
Two words: record demand, but I'm not going to try and convince you as your post shows me it would be fruitless. Do your own research and you will see that two of your points are incorrect. Also your last statement contradicts the one before it. I guess the evil big oil companies felt sorry for us this year.
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