Analyst says Chevron refinery may shut down

[Wuzzerdad]

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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.

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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