Thread: 2012 Fuel Costs
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Old 03-06-2012, 08:23 AM   #57
NoRegrets
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Originally Posted by TheProfessor View Post
Finally some sanity to the discussion.

If any person in Washington, DC had control of gas prices then the price woud go down.

Some news reports state that up to $15.00 per barrel of gas is raised by Wall Street speculators.

Most don't realize that when a tanker fills up in the Middle East that oil may be bought and sold a dozen times before it gets to ports in US.

Most don't understand commodity trading and prefer not to learn about such.

Construct more refineries. Not in my back yard. And liability issues.
I no longer believe what I read in the news or rely on headline facts to support my decision or positions. Research the refineries and pipeline companies and you will be amazed at how many there are. Most are efficient, safe, and have mature operations. Refined oil is now oue of our countries largest export items and is the largest industry (minus defense) that works to reverse our trade inbalance. Look into the HollyFrontier Corporation (HFC) as reference. They have a great website to visit to enlighten you on the business model and complexities. They also are major owner in a pipline company.

EPA regulations set by the Secretary of Energy has everything to do with the price of fuel. The largest refinery in the world closed in last month. Reason? They had a 700 million dollar EPA mandated refit. They could not make a profit so the shut down. They were on St. Croix, the largest employer of the Island, and most of the gas was targeted on the east coast. Three gas refineries on the east coast are now off-line due to EPA retrofits. EPA is dragging its feet on permits. Five coal fired electric plants are closing in Pennsylvania and two in New Jersey due to EPA rules. Look for brownouts this summer.

Oil got to 145 dollars per barrel in 2005 and the president signed an energy policy opening drilling. The barrel price dropped to 40 dollars per barrel and gas dropped to 1.90 per gallon. Nothing else changed in the world. No new discoveries, Wars still in Iraq and Afghanistan, etc.

The current president appointed Steven Chu as Secretary of Energy. That pair is has been poison to "fossil" energy which in turn is the life blood of our economy. Go to the CSPAN website and watch the congressional hearings with the Secretary of energy and you will listen to the link of the administration to the gas price from the horse’s mouth!
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