Mandated shortages

Climate Cult Little Known Facts 18 Comments

With every Keynesian talking head now claiming that higher interest rates are the solution to rising consumer prices, maybe they would care to explain how this will resolve the problem of a chronic shortage of refinery capacity? Green energy mandates and various other useless ingredients are setting the economy up for one big train wreck. Higher capital costs may see some existing refineries shut down or unable to expand output.

Refining capacity has fallen in western countries in recent years as investors and policy makers move away from fossil fuels.

In fact, in a recent interview on Bloomberg TV, Chevron Corp.’s CEO Mike Wirth warned that there may never be a new refinery built in the U.S.

“We haven’t had a refinery built in the United States since the 1970s,” Wirth told Bloomberg. “My personal view is there will never be another new refinery built in the United States.”

18 Replies to “Mandated shortages”

  1. Yet, the number one reason for the soaring prices is not mentioned. That is, curtailing domestic production by TurdHole and Xiden Zhou.

  4. There is plenty of refining capacity. There is a problem matching the correct feedstock to the correct refinery due to pipeline mismanagement. And there is a problem with not enough feedstock due to discouraging exploration and development.

  5. The central banks only have one playbook, though, and the answer to inflation is always higher interest rates but now the basis of every western economy is cheap money, so they can’t really crank up rates while the politicians actively exacerbate the problem with their green policies and spending. Total gong show.

  6. Chevron is in bed with the WEF.
    So is Exxon, BP and Shell.

    The “refinery bottleneck” has long been used as a pretext to keep gasoline prices high when crude oil prices go down. Now they’re just doubling down on it. Big Oil lobbies states to pass laws and regulations making it difficult if not impossible for new refineries to be built, especially by third parties.

  8. “With global oil demand now around pre-pandemic levels, and the IEA estimating that global refinery capacity fell in 2021, refineries are stretched. In a hypothetical product market without Russia, there’s just not enough capacity.”

    In other words:

    Russia is self-sufficient in energy.

    The globalist West is not.

    Ergo, this war ends one of two ways: the peoples of the West replace their leaders with people less interested in murdering Russians and Jews, or the Russians do it for them.

    Your assignment for this D-day is to ask a German how well the latter option worked out for them the last time.

  9. Alberta and Saskatchewan are self sufficient in both fuel production and refining, so we’re good. 🙂

    The concern I have is that reduction in the number of refineries and the age of remaining refineries is “Unplanned refinery outages are another risk”. During the pandemic we have seen the problem with too much concentration/too few producers in industries such meat packing and baby formula operations. Then there is the possibility of unplanned disruptions like the fires in food processing plants. Finding replacement parts for just-in-time stocking is alsi an issue with supply and transport bottlenecks.

    A few big refineries taken out of production for any of those reasons will cause fuel shortages. Central Canada and parts of Eastern Canada look like they have a bigger risk because of fewer, bigger refineries plus the use of imported oil (overseas and from the USA via the heavily litigated pipelines under the great lakes). This makes those regions of the country more vulnerable to oil import disruptions to refineries, I’d guess.

    More pipelines from western Canada might have reduced their supply vulnerability and lower crude costs…

    1. We had a nearby refinery here at Balzac, but then it got dismantled and sent to Russia.

      NEW LIFE FOR OLD OIL REFINERY

      March 2001

      It is not every day that an entire oil refinery is dismantled, moved half way around the world, and re-erected for a second life. But that is what happened late last year when the former Canadian Turbo oil refinery at Balzac, just north of Calgary in Alberta, Canada, was moved to its new home in Russia. Once producing 30,000 barrels of refined products per day, the refinery was originally built in 1981. Shell Canada purchased the refinery in 1992, but it outlived its usefulness at Balzac and was sold to Congress M. Congress, a stock venture company which is managing the purchase for the Russians.

      Most of the disassembled pieces were transported by road to Montreal and then by container ship to Russia. However, the largest portions went by road all the way to Houston, Texas, before taking to the ocean. When the refinery is re-erected at its new site and starts operating, with upgraded modifications, later this year, it is expected to be the most technologically advanced refinery in southern Russia.

      1. Think I remember that one. It was east of Hiway 2 a few miles, wasn’t it?

      2. At least a new refinery was built in Alberta. The newest one in Canada, I think.

        A small town in Saskatchewan, Kerrobert, was going to be the location of a mico-refinery but I haven’t seen updates. These refineries are modular and small, obviously. Like small modules nuclear reactors, micro-refineries may be part of the solution to building new energy capacity.

  10. Leftist policies are 100% to blame for the current mess. From endless, unrestrained borrowing to trying to convert us to a command and control green economy, the blame is entirely theirs for doing what they were warned not to but did anyway with a total belief in their opinions, what they call ‘ facts ‘ or ‘ science ‘ and their supposedly superior intellects.

  11. The left seems to believe that by simply ending the production of fossil fuels we will simply carry on with whatever tiny amount of electricity we can squeeze out of ??? for energy.

    I suggest finding or creating a replacement for current energy BEFORE you get rid of that current energy …

    or ….

    you will not believe what will happen next …. the population reduction will be awesome. And most of it will be on the left, because it is they who caused the problem with their green diseases.

    And I believe we on the sane side of the aisle have had enough of their insanity.

    .

  13. Everyone (other than SDA readers) forgets that there are two parts to inflation. Too many dollars chasing too few goods. Anyone that thinks this is an accident is extraordinarily naive. (To be polite)

  14. All the companies that bought into the 6uild 6ack 6eter are in for a real awakening…

    There will be no 6uild 6ack 6eter just complete and utter destruction where everything eventually stops…

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