re: White House Weighs Defense Production Act as U.S. Refineries Maxed Out

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Salaries, machinery costs, regulatory costs, etc have all increased downstream, at the refineries, and in the transport to gas stations since 2022 (when gasoline was higher) and especially since 2008 (peak of oil price but not gasoline price, not inflation adjusted, though). Same refinery baw position that paid say…$35 an hour at the plant in 2008 now pays say…$55 an hour. Or whatever, but you get my drift.

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So many refineries have converted traditional fuel units (e.g. diesel hydrotreater) into biofuel units due to the tax breaks. Perfect example is Chevron El Segundo. Take a unit that makes diesel or gasoline and turn it into a biofuel operating unit… reducing production capacity for fuels that people need in exchange for fuels nobody actually buys.

Who here puts biodiesel in their trucks? hydrogenated vegetable oil “HVO”? There’s no market for it, the refineries are producing it to lower their overall tax burden.

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Welp, I guess the energy sector, it's shareholders vs America First just don't see eye to eye and Energy is a scourge. I didn't vote for that.

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Welp, I guess the energy sector thanks God for the US military that protects those assets specifically for the very reason the USA might need to use them in an emergency. We are not there yet.

Energy is not a scourge but lifeblood. The nut cutting is just beginning and we get to watch those who have been cut bleed out.

It Will Be Glorious.

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Energy is not a scourge but lifeblood. The nut cutting is just beginning and we get to watch those who have been cut bleed out.

It Will Be Glorious.

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My President said all Energy costs, both fuel and home electricity, would be cut by 50% in cost within months of reelection. This was his campaign rally largest applause everywhere he went. And it was a great hope.

Still waiting. Not so glorious so far.

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This is damn close to spot on.

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A starting wage of $35 per hour with a 2.5% yearly compound increase grows to an hourly rate of $54.59 by the 19th year (after 18 years of raises).

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Taken the Learing Center money and increase capacity of the refineries

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Hell, we’ve seen oil trade at higher prices per barrel before and it not be this high at the pump. Where is that extra money going?

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Well the price per barrel of oil is just one input.

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No offense, but this is horse shite.

The refineries running at capacity+ means that the supply of oil is not an issue. They are obviously getting all they can use. This makes all the stories about the "strait this" and the "strait that" just hogwash. There is plenty of oil flowing.

The fact that the refineries are recording record breaking profit margins means that the cost of the oil is also not a problem. No company makes record profit margins when their raw materials costs are rapidly rising. They are most definitely not overpaying for the oil.

So if the supply of oil is not a problem and the cost of oil is not a problem, then where is the problem?

The only possible scenario is that somebody is buying a shitload of refined products from U.S. refineries that wasn't buying it before. I offer as exhibit "A", China.

I've been reading stories for months how global economists have been mystified how China has been able to slash their oil imports by as much as 60-70% for the last 6 months with no impact to their economy. Some theorist say they must have had a giant reserve somewhere, but there is no evidence of this. Other theorist say they must have massively gone "Green" and don't need oil anymore, which is idiotic. I think the most obvious answer is that they're buying refined diesel and gas from the U.S.
This smells like something that Trump and Xi worked out a long time ago to keep them out of the Iran conflict.

If all of that is accurate, there should be republican representatives shouting it from the rooftops on every street corner in america.

I dont have reason to doubt it, but why not be very public with that information if it is trje.

Im certain the DOJ probably mentioned that "a dozen or so refiners" who for years have magically kept production at 95% looks and acts very similar to an oligarchy of which there are several federal laws to deal with it.

How about you guys spend some of that fortune you have made by manipulating the market and upgrade your refineries......or I will use the war powers act to forbid export of diesel for...oh lets say....6 months.

The problem is that the refineries announced are to make products for export, not for the US.

Polaris has several grassroots refineries designed with some permitted for a few years already. The demand for products within the US is not what people think. This is why major refineries are near points of export. Gasoline and diesel are worth more exported than if consumed in the US.