House Democrats call for nationalization of refineries

[heyheybooboo]

Originally posted by: sactoking

Originally posted by: heyheybooboo
BigOilCo can build new refineries around the world but they can't build one in the United States in 30 years ....

It would be the best $5 billion the Fed has ever spent.

Ummmmm......... would not the "conservatives" say that's because the "liberals" and "environmentalists" won't let them?

Actually refinery capacity is substantially up over the last ten years and is being under utilized. The US is producing 500,000 gallons per day less than we were in 1997.

In 1998 the utilization of refinery capacity in the US was 95.6%.
In 2007 the utilization of refinery capacity in the US was 88.5%.

For the month of March (last month I could find) capacity utilizzation was 83.2%.

Overall refinery capacity in 1997 was 15.594 million gallons per day (mgd). In March US refinery capacity was nearly 17.6 mgd.

The point which I failed to make is that Exxon (in addition to buying back $32 billion of their stock last year with your money) is spending $4 billion (of your dollars) to build a new refinery in China.


And as far as the comments have gone concerning those poor, poor refineries not making any profits ...

Valero Energy Corporation
(largest refiner in North America)

Valero is the only independent refiner having a presence in almost all the regions of the U.S. In 2005 Valero had 18 refineries and a total throughput capacity of approximately 3.3 million barrels per day (BPD) - up from 900,000 BPD in the year 2000. Refinery capacity in 2008 is 3.1 million BPD (they sold their holdings in Aruba of all places).

70% of their overall capacity can process sour crude. Valero has no debt and repurchased $6 billion of their stock in 2007 (up from a $2 billion stock buyback in 2006).


Total Assets

FY 2000 - $ 4.307 billion
FY 2007 - $ 42.722 billion


Bottom line: We (the consumer) are being soaked. And instead of reinvesting in US (with our money) Big Oil is investing globally and spending 100s of billions of dollars buying back their stock. They literally are taking the money and running to India and China.

In response to the oil crisis of the 1970s we reduced our consumption of gasoline nearly 20%. Big Oil knows well that we are capable of doing it again if we join together and tell them to f*ck off.

 

[PrinceofWands]

Originally posted by: Socio
They can't manage Social Security, Welfare, Medicare, our borders, or virtually anything else WTF makes them think they can manage the Oil market?

House Democrats call for nationalization of refineries

House Democrats responded to President's Bush's call for Congress to lift the moratorium on offshore drilling. This was at an on-camera press conference fed back live.

Among other things, the Democrats called for the government to own refineries so it could better control the flow of the oil supply.

They also reasserted that the reason the Appropriations Committee markup (where the vote on the amendment to lift the ban) was cancelled so they could focus on preparing the supplemental Iraq spending bill for tomorrow.

At an off-camera briefing, House Majority Leader Steny Hoyer (D-MD) said the same. And a senior Republican House Appropriations Committee aide adds that "there were multiple reasons for the postponement" including discussion on the supplemental. But the aide said there was the thought that Democrats may wish to avoid a debate today on energy amendments.

Here are the highlights from briefing

Rep. Maurice Hinchey (D-NY), member of the House Appropriations Committee and one of the most-ardent opponents of off-shore drilling

1115

We (the government) should own the refineries. Then we can control how much gets out into the market.

The Federal Goverment already has to much control, the last damn thing we need is them having the ability to control our oil supply!

I agree, though I would say allowing corporations to control it is EXACTLY as bad. At least governments are supposed to work FOR the people. Corporations work only for evil.

 

[dmcowen674]

There is NO shortage of oil or gas.

There is a shortage of honesty.

Taking the criminals out of the Industry is a step in the right direction from what we have now.

 

[sandorski]

Originally posted by: heyheybooboo

Originally posted by: sactoking

Originally posted by: heyheybooboo
BigOilCo can build new refineries around the world but they can't build one in the United States in 30 years ....

It would be the best $5 billion the Fed has ever spent.

Ummmmm......... would not the "conservatives" say that's because the "liberals" and "environmentalists" won't let them?

Actually refinery capacity is substantially up over the last ten years and is being under utilized. The US is producing 500,000 gallons per day less than we were in 1997.

In 1998 the utilization of refinery capacity in the US was 95.6%.
In 2007 the utilization of refinery capacity in the US was 88.5%.

For the month of March (last month I could find) capacity utilizzation was 83.2%.

Overall refinery capacity in 1997 was 15.594 million gallons per day (mgd). In March US refinery capacity was nearly 17.6 mgd.

The point which I failed to make is that Exxon (in addition to buying back $32 billion of their stock last year with your money) is spending $4 billion (of your dollars) to build a new refinery in China.


And as far as the comments have gone concerning those poor, poor refineries not making any profits ...

Valero Energy Corporation
(largest refiner in North America)

Valero is the only independent refiner having a presence in almost all the regions of the U.S. In 2005 Valero had 18 refineries and a total throughput capacity of approximately 3.3 million barrels per day (BPD) - up from 900,000 BPD in the year 2000. Refinery capacity in 2008 is 3.1 million BPD (they sold their holdings in Aruba of all places).

70% of their overall capacity can process sour crude. Valero has no debt and repurchased $6 billion of their stock in 2007 (up from a $2 billion stock buyback in 2006).


Total Assets

FY 2000 - $ 4.307 billion
FY 2007 - $ 42.722 billion


Bottom line: We (the consumer) are being soaked. And instead of reinvesting in US (with our money) Big Oil is investing globally and spending 100s of billions of dollars buying back their stock. They literally are taking the money and running to India and China.

In response to the oil crisis of the 1970s we reduced our consumption of gasoline nearly 20%. Big Oil knows well that we are capable of doing it again if we join together and tell them to f*ck off.

hmm, they be fudging their figures? If that's the case, perhaps a little Legislative Knee-capping is all that's needed.

 

[Arkaign]

Originally posted by: heyheybooboo

Originally posted by: sactoking

Originally posted by: heyheybooboo
BigOilCo can build new refineries around the world but they can't build one in the United States in 30 years ....

It would be the best $5 billion the Fed has ever spent.

Ummmmm......... would not the "conservatives" say that's because the "liberals" and "environmentalists" won't let them?

Actually refinery capacity is substantially up over the last ten years and is being under utilized. The US is producing 500,000 gallons per day less than we were in 1997.

In 1998 the utilization of refinery capacity in the US was 95.6%.
In 2007 the utilization of refinery capacity in the US was 88.5%.

For the month of March (last month I could find) capacity utilizzation was 83.2%.

Overall refinery capacity in 1997 was 15.594 million gallons per day (mgd). In March US refinery capacity was nearly 17.6 mgd.

The point which I failed to make is that Exxon (in addition to buying back $32 billion of their stock last year with your money) is spending $4 billion (of your dollars) to build a new refinery in China.


And as far as the comments have gone concerning those poor, poor refineries not making any profits ...

Valero Energy Corporation
(largest refiner in North America)

Valero is the only independent refiner having a presence in almost all the regions of the U.S. In 2005 Valero had 18 refineries and a total throughput capacity of approximately 3.3 million barrels per day (BPD) - up from 900,000 BPD in the year 2000. Refinery capacity in 2008 is 3.1 million BPD (they sold their holdings in Aruba of all places).

70% of their overall capacity can process sour crude. Valero has no debt and repurchased $6 billion of their stock in 2007 (up from a $2 billion stock buyback in 2006).


Total Assets

FY 2000 - $ 4.307 billion
FY 2007 - $ 42.722 billion


Bottom line: We (the consumer) are being soaked. And instead of reinvesting in US (with our money) Big Oil is investing globally and spending 100s of billions of dollars buying back their stock. They literally are taking the money and running to India and China.

In response to the oil crisis of the 1970s we reduced our consumption of gasoline nearly 20%. Big Oil knows well that we are capable of doing it again if we join together and tell them to f*ck off.

So in other words, anyone who says this is because of lack of refining capacity, or poor, underpaid refinery companies, or too much demand, is full of crap? Nice.

 

[Fern]

Originally posted by: sandorski

Originally posted by: Fern
-snip-

If Refineries can't make any $$, then you have 2 options:

1) Subsidize them
2) some form of Public Ownership

Refineries don't Consume, they Produce/Supply.

Odd. And here those of us in accounting/finance were thinking the 2 options were:

1. cut costs, or

2. raise prices.

Fern