Monday, April 26, 2010

Do you think it costs more for foreign countries to refine our oil or less?

I watched a TV program a few weeks ago that said the US must have foreign countries refine our oil because we haven't built a new refinery since the 70s and we can't keep up with demand.





Do you think that is causing higher prices at the pump or not?


Why or why not?Do you think it costs more for foreign countries to refine our oil or less?
no not really because Citgo is usually the cheapest gas and all their gas is refined in VenezuelaDo you think it costs more for foreign countries to refine our oil or less?
That is true. The environmentalists won't allow the oil companies to build any new refineries, which means that environmentalists have a big chunk of the blame for the current gas prices. But, I don't think having foreign countries refine it would help. After all, the fuel costs of transporting the oil there and the gas back here would offset any cost benefits.
to answer your first question, no, thats why its done abroad (assuming it is, which im not sure)


is this causing higher prices? no, and the reason is, its been the same well before this happened, as you pointed out, ever since the 70s. so no its not why there are higher prices than a few years ago.
Importing refined product is more expensive than refining domestically.





While no new refineries have been build in over 30 years, due to environmentalist campaigns against them, refinery capacity has increased, as the existing ones have been expanded. Not nearly enough to keep up with demand, but it's happened.
i think partially taxes, partially the monopoly that the oil businesses are trying to create (hey guys lets all raise in price and we'll all profit, very few businesses control oil) we have created oil refinerys since the 70s but businesses are so keen to outsource because cost of labor is so high in the US. they make bigger margins in other countries.
we could probably outsource it to some Indian interns for 1/3 the price! We do half of our technologies that way already it seems o.O





The price at the pump seems to have more to do with the price per barrel of crude than the amount of refineries.. if you need proof of that just look back over the last month.. crude jumped $20 dollars a barrel and gas jumped $0.40 per gallon.
Yes the lack of refineries limits the supply that can be made available at any given moment. If there were more refineries there would be more supply...thus lower prices
Greed! All the explanations are just smoke and mirrors

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