Bloomberg- $200 Diesel Puts Biden In an Ugly Corner
Currently, the US has just 106 million barrels of diesel and heating oil in commercial stocks; the last time inventories were that low in mid-October was in 1951, when Truman was in the White House. Typically, inventories should be 30% higher this time of the year.
The reasons for the collapse in inventories and the price surge are four-fold. First, local diesel demand has recovered quicker than gasoline and jet-fuel from the impact of the pandemic, draining stocks. Second, foreign demand is also strong, with American diesel exports running at unusually high level. Third, the US also has lower refining capacity than before, reducing its capacity to make fuels. And then there’s Russia’s invasion of Ukraine. The US was importing a significant amount of Russian fuel oil before the war, which its Gulf of Mexico-based refiners turned into diesel. The trade ended after the White House sanctioned Russian petroleum exports.
Seems like they forgot an important point.
Bloomberg Law- Chevron CEO Says There May Never Be a New Refinery Built in US
“We haven’t had a refinery built in the United States since the 1970s,” Chief Executive Officer Mike Wirth said in an interview on Bloomberg TV. “My personal view is there will never be another new refinery built in the United States.”
h/t Michael Campbell
Joe Biden here.
Don’t like the price of diesel? Buy an electric truck.
Don’t forget the trailer-hitch mounted, gasoline-powered genset, Jerry can & extension cord…
This morning I heard from a lovely female friend in Singapore. She told me she has been talking with a lot of American visitors recently and they’re all complaining about healthcare costs and about Trump.
Trump?!?
I wonder if most of these folks are left-wing a$$holes who have abandoned America because the policies THEY supported and voted for have wrecked the country and now they’re taking the easy route by escaping it altogether.
Serious Question. Has Canada built any new refineries lately?
One refinery built and started operating in 2017.
The Sturgeon Refinery is the first refinery built in Canada in over 35 years. The refinery has been producing diesel and other products since December 2017. Phase One of the Sturgeon Refinery is designed to process approximately 79,000 barrels per day of diluted bitumen from Alberta’s oil sands into much higher value products. This includes low-carbon ultra-low sulphur diesel, vacuum gas oil, diluent, and natural gas liquids.
Others have had additions and or upgrades: for example:
Shell Scotford opened in 1984 with the Shell Scotford Refinery and Chemicals Plant. The Shell-operated Scotford Upgrader was expanded in 2011 and the Shell-operated Quest CCS facility was added in 2015.
And Irving on the east coast. The refinery was built in 1960 as a partnership between Irving Oil and Standard Oil Co. of California (SOCAL) on a 780-acre (320 ha) site in Saint John, New Brunswick. It was built to allow for expansions, the first of which occurred in 1971 and then again in 1974. In 2000, a larger, $1.5 billion upgrade was completed. Irving Oil bought out SOCAL’s share in the early 1980s
Joe,
Thank you.
New refineries yes, but ones already built have expanded.
Red herring.
Are you guessing, trolling or do you have a source for those new refineries and the expansion. From what I have been hearing the current refineries are breaking down, they were built in the 1970’s or earlier after all. If they were cars they would be sporting a collectors plate and only operated on weekends. These dinosaurs are over 50 years old with ancient technology but they are still chugging along – sort of. Even Reuters, that darling of the left, has to admit that the US has lost over 1 MBPD capacity since the pandemic; https://www.reuters.com/business/energy/which-us-refineries-have-shut-since-global-pandemic-why-2022-06-17/
The one in Washington State brokedown or “needed maintenance” recently which caused a huge spike in prices in the North West. I don’t see things getting better with the abolition of ICE cars in 2035, who would invest in a refinery that would take 10 years of environmental studies to get approved and 5 -10 years to build. Just in time to see the demise (the greenies hope) of the ICE vehicle.
Really? Expansion of the two refineries in the SF Bay Area, in Richmond and Martinez have been fought tooth and nail by every eco-Lawfare org. in the country …
https://www.berkeleydailyplanet.com/issue/2009-07-02/article/33279
Even Kamelala Ramalamadingdong got involved to STOP any refinery expansion …
https://eastbayexpress.com/ag-kamala-harris-criticizes-chevrons-richmond-refinery-expansion-plan-1/
In fact the local refineries cut back their operations to the hours of darkness only. Why? So all the sensitive Bay Areans won’t see the white steam (toxic smoke according to the uninitiated) coming out of the ‘smokestacks’. That was done decades ago.
The $ high cost of gasoline and diesel is down to supply and demand. And all the good little eco-leftists work to reduce demand only … never to increase supply. You’re a LIAR, Allen S.
US has just 106 million barrels of diesel and heating oil in commercial stocks; the last time inventories were that low in mid-October was in 1951.
This is also known as : F’ around, find out.
Holy F*ckin Shyte Sticks.
Only 106 million barrels.
Not looking good.
Or Play Stupid Games, Win Stupid Prizes. Or that Forest Gump quote “Stupid is as stupid does” – in this case its pretty stupid.
No new refineries? BANANA: Build Absolutely Nothing Anywhere Near Anything. Just another form of NIMBY.
I like the NIMBY with a full twist:
Build something in the middle of nowhere. Because it is built, people come.
Then they force the something to close down because it’s in their backyard.
NUTS – not under the sky!
Here we go. Also harvest season is going on and that is a huge seasonal increase in diesel demand. Winter is fast approaching and stocks of fuel take a long time to rebuild. Oil has different grades and gives out different fractions. Cross our fingers this might be unpleasant but no where near the hell parts of Europe and Britain will be seeing this winter.
The high prices this summer caused quite a collapse in demand so the price of fuel dropped somewhat. But that is over. So we will see.
We had a new refinery once, but it went to Russia.
NEW LIFE FOR OLD OIL REFINERY
The Petro Canadan refinery in Oakville, Ontario was shipped off to Karachi, Pakistan a decade or so back also.
Huh. Wondered what happened to it. Ex BIL’s family farm was ’bout a mile down the road from that refinery. With all the development going on in that neck of the woods, the farm & refinery are long gone.
i think BC took out all of its refineries. going by memory , one in vancouver and one in kamloops , long time ago
sturgeon is a disaster. i think it was double the original price and was several years late . 89000 bbls/day , not even that big. I suspect the design was more like 150000 bbls /day
Terra near Courtright is supposed to be down for scheduled upgrades. 1 of only 2 or 3 plants producing DEF in North America. They keep putting off the big upgrades. Making record profits, stripping away worker benefits. Accountants are running the show. Instead of upgrades every 2 years now the plants are strung out to an 8 year cycle or thereabouts. Not certain of all the ins and outs but it sounds to me a rather precarious business plan for an integral part of infrastructure. So I have been told.
Kearl -Imperial Oil, was the last big open pit oil sands mine built. Its good for 50 yrs.
Edmonton refineries seem to have expanded over time.
Smaller operations aren’t profitable here. Too much reg overhead?