Analyst says Chevron refinery may shut down

[pahoated]

Yes, the vagaries of measurement systems. It has been corrected but that still leaves a 42-gal barrel of gasoline priced almost twice a 42-gal barrel of light, sweet crude. It would seem unlikely to import distilled gasoline and diesel oil and expect it to be the same price to the customer as importing foreign oil and distilling it locally.

There is an interesting update to this today. This article is saying the closure of the Chevron refinery is probably inevitable and provides a lot of local stats. They are saying the Tesoro closure will have little impact on local gas and diesel prices since they will be imported, distilled, from the West Coast. I wonder if there isn't a hidden story there, if Navy oil supply ships are used for the transport. The article does go on to state Hawaiian Electric is looking at bigger problems. The thing about oil is it can only be burned efficiently in different systems if it is of a certain type and content. I was surprised to find out Venezuela oil, the 4th largest imported oil source for the US, can't be used for gasoline at all.

http://www.hawaiinewsnow.com/story/20956...ries-close
Don't be surprised if both refineries close, experts say

More recent Big Oil news. Funny how the Teapublicans and Occupy always stays totally quiet about obscene Big Oil profits, giant multibillion dollar federal subsidy, tax rates lower than poverty income pays, proven large scale poisoning levels of toxic exhaust, and an almost totally monopolistic hold on the entire planet.

http://www.cnbc.com/id/100427200
Gasoline at Highest Price Ever for This Time of Year

http://www.foxbusiness.com/news/2013/01/...tory-data/
Crude-Oil Futures Higher; Gasoline Jumps After U.S. Inventory Data

http://thinkprogress.org/climate/2013/02...?mobile=nc
Exxon, Chevron Made $71 Billion Profit In 2012 As Consumers Paid Record Gas Prices

"It was a majority decision to descend into the Dark Ages. Don't worry, be happy, bang on da drum all day!"

[terracore]

In 2011 US "green energy" subsidies were 16 billion dollars and fossil fuel subsidies were only 2.5 billion. Renewable energy accounted for less than 15% of the energy consumed in 2011. So calculating that 16 billion dollars per energy unit delivered to the end consumer... fossil fuels are a huge bargain, if you are talking subsidies. (Solyndra, anyone?)

"Exxon, Chevron Made $71 Billion Profit..." These statements are tossed around like $71 billion dollars were deposited directly into Satan's bank account. Exxon and Chevron are publically traded shares, ANYBODY can have a slice of that $71 billion pie if they want to. Chances are that if you have a diversified retirement portfolio, you probably own fossil fuel energy stock and probably don't even know it. If your investment funds are losing money, maybe they invested in Solyndra instead of fossil fuels.

[Wuzzerdad]

quote:

---

Originally posted by pahoated
There is no direct coupling between oil economics in Hawaii with mainland oil economics. There is a translational coupling with the price of a barrel of oil, as long as it was being refined locally. This coupling will be lost if no oil is being refined locally. Here is some simple math. International crude oil is $96 per barrel (light, sweet crude). There are 42 gallons per barrel. That makes crude oil roughly $2.29 per gallon. Gasoline and diesel are now roughly $4 per gallon or $168 per barrel.

---

There is a production advantage when you "crack" crude oil, so the refineries get more than 42 gallons of products from a 42 gallon barrel, depending on the product up to a 35% greater volume yield. [:p]

Even the "waste" is sold and useful as road tar.



I started out with nothing and I still have most of it.
Mahalo
Rick

[kalakoa]

By that logic: shipping cost for refined products will be higher, since there is more of it.

[terracore]

quote:

---

Originally posted by kalakoa

By that logic: shipping cost for refined products will be higher, since there is more of it.

---

Not necessarily- as the energy required for the refining doesn't have to be shipped over.

[Frank]

crude down 1% + today...listening for those democats to speak up loud and clear..

[pahoated]

Cracking - "Using catalysts, heat, steam and or hydrogen complex organic molecules (e.g. kerogens or heavy hydrocarbons) are broken down into simpler molecules (e.g. light hydrocarbons) by the breaking of carbon-carbon bonds in the precursors."

Hello, where do the catalysts, heat, steam and kerogens come from? From the same barrel of oil? Let's see, using that logic, I have a $100 pile of 1 dollar bills. If I add a pile of 100 1 dollar bills, voila, my original pile doubled. Magic!

One month chart of light crude oil price:
http://markets.money.cnn.com/commodities.../chart.asp

Well, at least the Teapublicans are identifying themselves.


"It was a majority decision to descend into the Dark Ages. Don't worry, be happy, bang on da drum all day!"

[Frank]

i'll identify myself as an independent thanks an am perplexed as i have heard nothing from the indies either with regard to - 2008 crude is at $147 per bbl...gas at $4.34 and diesel at $5.40 -- Today crude is at $96.17 and gas is at $4.24 and diesel is at $4.76...if i figga correctly, a 35% drop in crude price and and and zip drop in fuel cost to the consumer...Not a sound can be heard from ANY of our "for the people by the people" politicos...disappointing

[Bullwinkle]

timely - driving behind a "leaf" all electric - sign of the times. Most of the wold has enforced conservation by adding on a hefty layer of taxes - enlightened states invested the taxes in road work and public transportation - Autopia style with over the top landscapes and fancy round abouts with fountains and statues in the center -

makes one one to own a Alfa or VW ( passat / toureg) 160 mph .........diesel - We really lag behind - dont have the rocket ship small displacement diesels in the fleet either.........

Back here at the ranch the message seems to be buy an electric car and lots of solar cells - the industry leaders having decided our future imho