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re: Heard on the news $4 a gallon gas again

Posted on 1/23/11 at 11:40 am to
Posted by BrandNew
Member since Aug 2010
330 posts
Posted on 1/23/11 at 11:40 am to
quote:

Well then hell, we should shut down all oil rigs and save the environment because the resulting increase in crude prices will not necessarily lead to higher gas prices.


Once again, a rhetorical post without any substance. At first, I was just being overdramatic with the retard comment, but you are steadily proving me correct. Please do yourself a favor and stop posting here.

To the poster inquiring about the relationship of crude to gas prices, crude is used to make plastics and not all crude is easily processed into gas. So, you have a variety of factors that could lead to an increase in gas prices even though crude prices remain relatively constant. A larger capacity for the domestic production of gas through building more refineries or expanding the capacity of existing refineries would eliminate many of the spikes in gas prices. You can drill domestically all day, but if the refinery capacity is not up to par then you still will have spikes in gas prices even where crude prices remain constant. Of course, you have the issue of do you drill first and expand refineries later or expand the refineries first and drill later.
Posted by cwill
Member since Jan 2005
54754 posts
Posted on 1/23/11 at 12:41 pm to
Few people realize that not all oil is equal.
Posted by PointsInCase
Member since Dec 2009
698 posts
Posted on 1/23/11 at 2:45 pm to
quote:

To the poster inquiring about the relationship of crude to gas prices, crude is used to make plastics and not all crude is easily processed into gas.

This.

Only roughly 48% of a barrel is refined into gasoline.
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