Oil Industry to Scale Back Refinery Expansion

[Yo_Mama_Been_Loggin]

Ka-ching

By H. JOSEF HEBERT
Associated Press Writer


WASHINGTON (AP) -- A push from Congress and the White House for huge increases in biofuels, such as ethanol, is prompting the oil industry to scale back its plans for refinery expansions. That could keep gasoline prices high, possibly for years to come.

With President Bush calling for a 20 percent drop in gasoline use and the Senate now debating legislation for huge increases in ethanol production, oil companies see growing uncertainty about future gasoline demand and little need to expand refineries or build new ones.

Oil industry executives no longer believe there will be the demand for gasoline over the next decade to warrant the billions of dollars in refinery expansions - as much as 10 percent increase in new refining capacity - they anticipated as recently as a year ago.

http://hosted.ap.org/dynamic/stories/E/ETHANOL_REFINERIES?SITE=WASJC&SECTION=BUSINESS&TEMPLATE=DEFAULT

[WCGreen]

1. EXXON made 10 Billion in profits for the 1ist quarter this year....

It costs about 7 billion to build a new refinery...

What's the problem...

[Nickster]

2. They always have an excuse. The environmentalists keep them from building more refineries, they

couldn't possibly foresee the demand for gasoline, etc etc etc. Now because of the push for alternative fuels, they refuse to invest in refineries. One way or another, they always find a way to limit supply.

[Kat45]

3. They're scaling back to keep gas prices high.

These guys are so full of it.

[BeHereNow]

4. Bingo.

Economics 101.
Supply and demand.
Control the supply and increase profits.
That's ALL this fucking "terra" war is about.

Water is next people.

BHN

[FogerRox]

5. Or ...Peak oil happened May 2005, & the Oil Companies know it, and see no reason

So if there isn't going to be more crude oil in the future, then there is obviously no reason for increased refinery capacity in the future.

[kirby]

6. Scale back? There is already a shortage!

There has not been a new refinery built in what 20 years? Only upgrades to existing. Its in Big Oil profit interest to reduce supply so what incentive do they have to build anything?

[Systematic Chaos]

7. K&R for the obvious.

Welcome to Peak Oil. Enjoy the ride, it's gonna get bumpy.

[Extend a Hand]

8. Well since output has been flat

for over a year now and because the majority of the world's largest oil fields are in decline, there ought to have plenty of spare refinery capacity soon.

[dysfunctional press]

10. DING! DING! DING!...

the execs have run the numbers- by the time big expensive new refineries come on line- they won't be needed, due to declining amounts of raw petroleum to process.

[Bozita]

9. And maybe it's time for another refinery explosion/shutdown.

Apologies for stating the obvious.

[4_TN_TITANS]

11. Is this such a bad thing?

Of course it hurts the wallet, but isn't eliminating or cutting back the goal? We have yet to pay the price per gallon that Europeans have been paying for years. As much as I hate to say it, high prices have been long overdue to curb our reckless consumption. It sucks that we're left at the mercy of Big Oil, but the writing's on the wall - petroleum is finite and fading fast.

[ohtransplant]

12. A little article in the WSJ on Saturday 6/16...

supports this.

An article (page B5) entitled, "Renewed Supply Concerns Give Crude Oil a Boost" included the following paragraph.

(Snip)
" The decline came as refinery utilization, or the amount of refining capacity in use, fell for a second straight week, by 0.4 percentage point to 89.2% of capacity, reflecting an unusually long period of refinery outages and planned maintenance this year."


Very simply Congress and the DOJ should investigate these price manipulations. We have laws against...Yea I know... It's another in a long line of outrages. When will we Amurkins wake up? :mad:

[Up2Late]

13. Oh, you want to really get pissed off? Listen to these reports on the U.S. Auto Industry from today!

(Correct me if I'm wrong but, Isn't this the definition of a Conspiracy!?!)

U.S. Car Makers Warm to Parts of Energy Bill

Listen to this story... (at link above)
by David Welna

All Things Considered, June 18, 2007 · Detroit is not embracing
the fuel-economy standards proposed in the
Senate energy bill, but auto manufacturers are embracing
the mandate for more homegrown fuels, such as ethanol.

Because GM and Ford build cars in Brazil, where ethanol
powers half of the vehicle fleet, they already have
extensive experience and technology for using such fuels.

Shifting to alternatives would probably reduce U.S. oil
dependency, as Congress wants. But skeptics say the auto
manufacturers are embracing ethanol to avoid higher
mileage standards.

(more at link) <http://www.npr.org/templates/story/story.php?storyId=11164716>

Fuel Economy Proposal Meets Resistance in Detroit

Listen to this story...

All Things Considered, June 18, 2007 · Proposed legislation would raise
the requirement for Corporate Average Fuel Economy to 35 miles per gallon over 10 years.

Automakers recently have said it's impossible for them to meet
tougher fuel efficiency standards, but New York Times Detroit
Bureau Chief Micheline Maynard says carmakers in Japan and Europe
already have to meet higher standards.
Maynard talks with Michele Norris.

(audio at link) <http://www.npr.org/templates/story/story.php?storyId=11164719>