East Coast gasoline shortage?

[VirtualLarry]

I did some web searches, after a few local BP stations said that they didn't have any gas to sell, nor did they know when more was arriving.

The situation seems a bit more dire than I expected.

Apparently, some of the east-coast refineries have or are closing, due to losing $1 mil/day.

How they are losing $1mil/day, when supposedly, oil/gas companies are raking in record profits due to the high price of gasoline, is unknown to me.

Anyways, here's some links:

http://www.nj.com/business/index.ssf/2012/03/as_more_refineries_close_exper.html

http://cleantechnica.com/2012/04/13/east-coast-may-get-hit-with-gas-shortage-higher-prices/

http://money.cnn.com/2012/04/10/news/economy/refineries-gas-prices/index.htm?source=cnn_bin

This doesn't sound good at all.

Edit: This thread may also be relevant:
http://forums.anandtech.com/showthread.php?t=2210581

 

[Capt Caveman]

About the BP gas stations - http://articles.boston.com/2012-04-13/business/31329321_1_bp-stations-gas-station-operators-bp-brand

 

[PricklyPete]

Obviously it is the Unions fault...

Looks like these facilities were just old with little motivation to build new refineries in that area.

 

[darkewaffle]

Obama

 

[FoBoT]

sounds like too much regulation that prevents them from modernizing the refineries

The refineries are losing money because they are old and cannot process the cheaper, heavier types of oil that are increasingly in supply from Canada's oil sands, Saudi Arabia, Venezuela and elsewhere.
10 cars you don't want during a gas crisis
The Sunoco refineries can process only the types of "light, sweet" crude imported from West Africa or the North Sea. The lightness refers to the oil's density, the sweetness to its sulfur content.
Light, sweet oil is the easiest to turn into gasoline -- but also costs about $20 more per barrel.
Refineries that have been upgraded and expanded along the U.S. Gulf Coast are capable of turning the heavier, cheaper oil into gasoline.

http://money.cnn.com/2012/04/10/news/economy/refineries-gas-prices/

 

[spaceman]

bp in town over from me outta gass

 

[Texashiker]

When demand outgrows infrastructure.

One big issue that I see, the oil companies would rather close a refinery then to upgrade it. Being able to manufacture fuel is directly related to national security.

If we can not gas up our cars and trucks within our borders, how are we supposed to fight a war thousands of miles away.

We have to keep those refineries upgraded and producing.

Looks like these facilities were just old with little motivation to build new refineries in that area.

When I was working in the welding field, I saw parts that were 30+ years old coming in for repairs. Those refineries would put off fixing an issue until the last minute.

some of the parts I worked on in 2003 - 2004 were built in the 1960s

 

[JulesMaximus]

Swell. I already carpool with a co-worker one day a week and ride my motorcycle to work 1-2 days a week. Might have to increase both of those activities.

 

[dud]

BPs by me have plenty of gas ... unfortunately they are the most expensive in town.

I can't wait until gas falls back to the prices I used to pay ... $0.89 per gallon. Those were the days ...

 

[Savij]

Noticed the prices jumped a fair amount here in Boston. I complained to myself while I filled up, but I don't care too much since I get gas once a month now (work from home).

 

[manimal]

Prices on the rise with seasonal factors compounding the reduced output the refining industry is forecasting.

 

[OverVolt]

Dis why:

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=a103600001&f=m

See drop off at end of chart.

Its a demand problem, not a supply problem.

See Jules's post. That x 100.

 

[OverVolt]

When demand outgrows infrastructure.

rofl rofl rofl

There is so little demand that we don't need as many refineries as we used to run. Usually when they switch between winter/summer blends there is enough coverage between refineries but since so many have closed they screwed up their coverage.

 

[ImpulsE69]

OMG. Someone delete this thread. Gasoline prices are based off string theory. Even this threads title gives reason gas prices will jump regardless of truth.

 

[Texashiker]

rofl rofl rofl

Do you know how many years it takes to build a good sized refinery?

With refineries becoming outdated, demand is outstripping supply.

 

[OverVolt]

Do you know how many years it takes to build a good sized refinery?

With refineries becoming outdated, demand is outstripping supply.

High prices = sales down = margins compressed = refineries close

If they could afford to build a new refinery they would.

 

[xanis]

Haven't witnessed this myself. I spend most of my time in the Philly metro area and in Jersey around Princeton/New Brunswick.

 

[Texashiker]

If they could afford to build a new refinery they would.

New refineries are being built, Motiva in Port Arthur and Total in Groves Texas have been working on expansions for the past few years.

Keep in mind there is a difference between a new refinery, and a new unit inside the refinery.

Who says companies can not afford to build new units or refineries? Have you been keeping up with the profits Exxon has been reporting?

 

[EagleKeeper]

BPs by me have plenty of gas ... unfortunately they are the most expensive in town.

I can't wait until gas falls back to the prices I used to pay ... $0.89 per gallon. Those were the days ...

Local BPs outside Philly seem to have fuel. Holding at the high end of local fuel prices.

Agree, miss the days of a $5 tank for the Chevy

 

[Hacp]

From my understanding, there is an oversupply of refinery capacity in the world, so closing down a plant losing a million a day is pretty profitable.

 

[Syn]

Expecting more reports of record profits by oil companies.

 

[mshan]

I believe one or more east cost refiners are closing down because I think their input costs are based upon Brent vs. WTI.

Don't know if change from winter to summer blends has taken place, but that is supposed to add 10 cents or something like that to gas prices.

I can't find link to article know, but I read interesting article on where oil for refineries comes for different regions of US (e. g. Alaska pipeline vs. Canada vs. other).

 

[dmcowen674]

Gasoline shortage?

Apparently, some of the east-coast refineries have or are closing, due to losing $1 mil/day.

How they are losing $1mil/day, when supposedly, oil/gas companies are raking in record profits due to the high price of gasoline, is unknown to me.

Anyways, here's some links:

http://www.nj.com/business/index.ssf/2012/03/as_more_refineries_close_exper.html

http://cleantechnica.com/2012/04/13/east-coast-may-get-hit-with-gas-shortage-higher-prices/

http://money.cnn.com/2012/04/10/news/economy/refineries-gas-prices/index.htm?source=cnn_bin

This doesn't sound good at all.

Edit: This thread may also be relevant:
http://forums.anandtech.com/showthread.php?t=2210581

The only answer is to Nationalize the oil/Gas Industry.

Clearly they have shown to be not capable of regulating themselves.

 

[dmcowen674]

When I was working in the welding field, I saw parts that were 30+ years old coming in for repairs. Those refineries would put off fixing an issue until the last minute.

some of the parts I worked on in 2003 - 2004 were built in the 1960s

If the Industry was Nationalized this would not happen.

 

[dmcowen674]

Prices on the rise with seasonal factors compounding the reduced output the refining industry is forecasting.

Hopefully they pay $20 a gallon on the East Coast :thumbsup: